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CHAPTER 4
Cookie Creations
(Note: This is a continuation of the Cookie Creations from Chapters 1 through 3.)
CC4 Natalie had a very busy December. At the end of the month, after journalizing and
posting the December transactions and adjusting entries, Natalie prepared the following
adjusted trial balance.
COOKIE CREATIONS
Adjusted Trial Balance
December 31, 2016
Debit
Credit
Cash
$1,180
Accounts Receivable
875
Supplies
350
Notes Payable
2,000
Owner’s Capital
800
Owner’s Drawings
500
Service Revenue
4,515
Salaries and Wages Expense
1,006
Utilities Expense
125
Instructions
Using the information in the adjusted trial balance, do the following.
(a) Prepare an income statement and an owner’s equity statement for the 2 months ended
December 31, 2016, and a classified balance sheet as at December 31, 2016.The note
payable has a stated interest rate of 6%, and the principal and interest are due on
November 16, 2018.
