Summary account balances for Mom’s Cookie Company at the end of February are presented below. The summary includes all transactions for February, not just those described in this chapter. In particular, additional sales transactions have been included.

Mom’s Cookie Company

Account Balances

February 28, 2004

Account Balance

Assets:

Cash .................. 7,740

Accounts Receivable ........... 1,580

Merchandise Inventories ............ 7,520

Supplies ................. 60

Prepaid Rent ............... 1,200

Equipment ...............31,000

Accumulated Depreciation ..........(1,040)

Total Assets ...............48,060

Liabilities:

Accounts Payable ............. 1,400

Unearned Revenue ............ 3,000

Interest Payable .............. 400

Notes Payable ..............30,000

Total Liabilities .............34,800

Owners’ Equity:

Contribution by Owners ..........10,000

Retained Earnings ............. 480

Sales Revenue ..............17,160

Cost of Goods Sold ............. (11,440)

Wages Expense .............. (1,000)

Rent Expense .............. (600)

Depreciation Expense ........... (520)

Supplies Expense .............. (400)

Utilities Expense .............. (220)

Interest Expense .............. (200)

Total Owners’ Equity ..........13,260

Required

Use the account balances to

(a) Prepare an income statement for February,

(b) Close the revenue and expense accounts (show journal transactions and ledger accounts),

(c) Prepare a post-closing summary of account balances, and

(d) Prepare a balance sheet.