CC4 COOKIE CREATIONS
(a) COOKIE CREATIONS
Income Statement
For the Two Months Ended December 31, 2016
Revenues
Service revenue ……………………………………………….. $4,515
Expenses
Supplies expense …………………………………………….. $1,025
Salaries and wages expense …………………………….. 1,006
Advertising expense …………………………………………. 165
COOKIE CREATIONS
Owner’s Equity Statement
For the Two Months Ended December 31, 2016
Owner’s Capital, November 1 ……………………………….. $ 800
Add: Net income ………………………………………………… 2,029
2,829
CC4 (Continued)
(a) (Continued)
COOKIE CREATIONS
Balance Sheet
December 31, 2016
Assets
Current assets
Cash …………………………………………………………………. $1,180
Accounts receivable ………………………………………….. 875
Supplies ……………………………………………………………. 350
Liabilities and Owner’s Equity
Current liabilities
Accounts payable ……………………………………………… 0$ 75
Salaries and wages payable ……………………………….. 56
Unearned service revenue …………………………………. 300
Total current liabilities …………………………………… $ 431
Long-term liabilities
Interest payable…………………………………………………. 15
CC4 (Continued)
(b)
GENERAL JOURNAL
J4
Date
Account Titles and Explanation
Debit
Credit
2016
Dec. 31 Service Revenue ………………………………. 4,515
Income Summary …………………………. 4,515
Supplies Expense ………………………… 1,025
Insurance Expense ………………………. 110
Depreciation Expense ………………….. 40
Interest Expense ………………………….. 15
CC4 (Continued)
(c) COOKIE CREATIONS
Post-Closing Trial Balance
December 31, 2016
Account Debit Credit
Cash ……………………………………………………………… $1,180
Accounts Receivable ……………………………………… 875
Supplies ………………………………………………………… 350
Salaries and Wages Payable …………………………... 56
Unearned Service Revenue …………………………….. 300
Interest Payable …………………………………………….. 15