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Continuing Cookie Chronicle_CCC4

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Question;Continuing Cookie Chronicle;(Note:This is a continuation of the;Cookie Chronicle from Chapters 1 through 3.);CCC4Cookie Creations is gearing up;for the winter holiday season. During the month of December 2014, 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 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;baking 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 $45 of brochures and posters were used.;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 31 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, 2014.;(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, 2014.;(f) Prepare;an income statement and a retained earnings statement for the 2-month period;ending December 31, 2014, and a classified balance sheet as of December 31, 2014.;(g) Prepare;and post closing entries as of December 31, 2014.;(h) Prepare;a post-closing trial balance.;(c) Totals $8,160;(e) Totals $8,804;(f) Net income $3,211;(h) Totals $6,065

 

Paper#38280 | Written in 18-Jul-2015

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