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Natalie is busy establishing both divisions of her...

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Natalie is busy establishing both divisions of her business (cookie classes and mixer sales) and completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week. The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with Kzinski that include shipping costs in the negotiated purchase price (mixers will be shipped FOB destination). Assume that Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory. The following transactions occur in February to May 2008. Feb. 2 Natalie buys two deluxe mixers on account from Kzinski Supply Co. for $1,200 ($600 each), FOB destination, terms n/30. 16 She sells one deluxe mixer for $1,050 cash. 25 She pays the amount owed to Kzinski. Mar. 2 She buys one deluxe mixer on account from Kzinski Supply Co. for $618, FOB destination, terms n/30. 30 Natalie sells two deluxe mixers for a total of $2,300 cash. 31 She pays the amount owed to Kzinski. Apr. 1 She buys two deluxe mixers on account from Kzinski Supply Co. for $1,224 ($612 each), FOB destination, terms n/30. 13 She sells three deluxe mixers for a total of $3,450 cash. 30 Natalie pays the amounts owed to Kzinski. May 4 She buys three deluxe mixers on account from Kzinski Supply Co. for $1,875 ($573.33 each), FOB destination, terms n/30. 27 She sells one deluxe mixer for $1,150 cash. Instructions (a) Prepare jouranl entries for each of the transactions. (b) Determine the cost of goods available for sale. Recall from Chapter 5 that at the end of January, Cookie Creations had three mixers on hand at a cost of $595 each. (c) Calculate (i) ending inventory, (ii) cost of goods sold, (iii) gross profit, and (iv) gross profit rate under each of the following methods: LIFO, FIFO, and average cost. (d) Natalie is thinking of getting a bank loan. If this is the only factor Natalie hs to consider in choosing an inventory cost flow assumption, which cost flow assumption would you recommend that Natalie use? Why?,Actually, I submitted the incorrect one. How can I resubmit with the correct one?,Not sure if question went through but this is the incorrect assignment how can I submit the correct one?,Please do not do first assignment. This is the correct one.. see attachment. I only need help with CCC5,The correct assignment is attached. Do you have a way to respond that you have received the correct assignment? Or call 615-426-7723,Hello, please DO NOT work on assignment CCC6. Could you please email me at quiquort@yahoo.com. I have attached the correct assignment CCC5,Thanks. January 8th collected $450.00 from community center January 13th $75.00 cell bill January 28th $56.00 for assistant ( 7hours * $8.00 per hour),okay let me retrieve those and I will get them to you later.. I am at work and may not be able to access them from here.,This is the original assignment. As I do not have the final answers to show corrections or mistakes. My professor has not graded them so I am not sure if my work would be correct any way. My deadline to turn in CCC5 is Sunday Midnight CST. Continuing Cookie Chronicle (Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 3.) CCC4 Cookie Creations is gearing up for the winter holiday season. During the month of December 2009, the following transactions occur. Dec. 1 Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some administrative duties. 5 Natalie teaches the class that was booked on November 25. The balance outstanding is received. 8 Cookie Creations receives a check for the amount due from the neighborhood school for the class given on November 30. 9 Cookie Creations receives $750 in advance from the local school board for five classes that the company will give during December and January. 15 Pays the cell phone invoice outstanding at November 30. 16 Issues a check to Natalie?s brother for the amount owed for the design of the website. 19 Receives a deposit of $60 on a cookie class scheduled for early January. 23 Additional revenue earned during the month for cookie-making classes amounts to $4,000. (Natalie has not had time to account for each class individually.) $3,000 in cash has been collected and $1,000 is still outstanding. (This is in addition to the December 5 and December 9 transactions.) 23 Additional supplies purchased during the month for sugar, flour, and chocolate chips amount to $1,250 cash. 23 Issues a check to Natalie?s assistant for $800. Her assistant worked approximately 100 hours from the time in which she was hired until December 23. 28 Pays a dividend of $500 to the common shareholder (Natalie). As of December 31, Cookie Creations? year-end, the following adjusting entry data are provided. 1. A count reveals that $50 of brochures and posters remain at the end of December. 2. Depreciation is recorded on the baking equipment purchased in November. The baking equipment has a useful life of 5 years. Assume that 2 months? worth of depreciation is required. 3. Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website account directly for the amount of the amortization.) The website is amortized over a useful life of 2 years and was available for use on December 1. 4. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued during November and December.) Round to nearest dollar. 5. One month?s worth of insurance has expired. 6. Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neighborhood community center on December 31. In early January Cookie Creations sends an invoice for $450 to the community center. 7. A count reveals that $1,025 of baking supplies were used. 8. A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15. 9. Because the cookie-making class occurred unexpectedly on December 28 and is for such a large group of children, Natalie?s assistant helps out. Her assistant worked 7 hours at a rate of $8 per hour. 10. An analysis of the unearned revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been taught by the end of December. The $60 deposit received on December 19 for another class also remains unearned. Instructions Using the information that you have gathered and the general ledger accounts that you have prepared through Chapter 3, plus the new information above, do the following. (a) Journalize the above transactions. (b) Post the December transactions. (Use the general ledger accounts prepared in Chapter 3.) (c) Prepare a trial balance at December 31, 2009. (c) Totals $8,160 (d) Prepare and post adjusting journal entries for the month of December. (e) Prepare an adjusted trial balance as of December 31, 2009. (f) Prepare an income statement and a retained earnings statement for the 2-month period ending December 31, 2009, and a classified balance sheet as of December 31, 2009. (g) Prepare and post closing entries as of December 31, 2009. (h) Prepare a post-closing trial balance. 2 chapter 4 Accrual Accounting Concepts (e) Totals $8,804 (f) Net income $3,211 (h) Totals $6,065,I have attached documentation. Thanks,Not sure if you got last message because I was at work. But I have attached the document for CCC4. Thanks

 

Paper#3138 | Written in 18-Jul-2015

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