CCC4 CONTINUING COOKIE CHRONICLE
(a)
General Journal
Date Account Titles Debit Credit
Dec. 1 No journal entry required.
5 Cash ……………………………………………………….. 90
Unearned Service Revenue ……………………… 60
Service Revenue ……………………………….. 150
16 Accounts Payable ……………………………………. 600
Cash …………………………………………………. 600
19 Cash ……………………………………………………….. 60
Unearned Service Revenue ……………….. 60
CONTINUING COOKIE CHRONICLE (Continued)
(d)
Date Account Titles Debit Credit
(1)
Dec. 31 Supplies Expense …………………………………….. 45
Supplies …………………………………………….. 45
(2)
31 Depreciation Expense
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
31 Unearned Service Revenue ($750 ÷ 3/5) …….. 450
Service Revenue ………………………………… 450
12/8 300
12/23 1,250
12/9 750
12/23 800
12/19 60
12/28 500
12/23 3,000
12/31 Bal. 75
12/31 23
12/31 Bal. 23
11/30 Bal. 220
12/31 45
12/23 1,250
12/31 1,025
12/31 Bal. 400
12/9 750
12/31 450
12/19 60
12/31 Bal. 360
11/30 Bal. 1,200
12/31 Bal. 2,000
11/30 Bal. 600
12/31 25
12/31 Bal. 575
12/31 Bal. 2,711
CONTINUING COOKIE CHRONICLE (Continued)
(b), (d), (g)
(b), (d), and (g)
Cash
11/30 Bal. 340
12/15 50
12/5 90
12/16 600
Accounts Receivable
12/8 300
Supplies
Prepaid Insurance
11/30 Bal. 1,200
12/31 100
12/31 Bal. 1,100
Accumulated Depreciation
12/31 40
12/31 Bal. 40
Website
Accounts Payable
12/15 50
11/30 Bal. 650
12/16 600
12/31 75
Salaries and Wages Payable
12/31 56
12/31 Bal. 56
Unearned Service Revenue
12/5 60
11/30 Bal. 60
Notes Payable
11/30 Bal. 2,000
11/30 Bal. 800
12/31 Bal. 800
Retained Earnings
12/31 500
12/31 Bal. 3,211
12/28 500
12/31 Bal. 500
12/31 Bal. 0
12/31 100
12/31 100
12/31 Bal. 0
12/31 450
12/31 5,450
12/31 450
0
12/31 45
12/31 40
12/31 1,025
12/31 Bal. 0
12/31 56
12/31 856
12/31 Bal. 0
Depreciation Expense
12/31 Bal. 40
12/31 40
12/31 Bal. 0
12/31 23
12/31 23
12/31 Bal. 0
CONTINUING COOKIE CHRONICLE (Continued)
Service Revenue
11/30 Bal. 400
12/5 150
Utilities Expense
11/30 Bal. 50
12/31 75
12/31 125
12/313 Bal. 0
Salaries and Wages Expense
12/23 800
Amortization Expense
12/31 25
12/31 25
12/31 Bal. 0
Income Summary
12/31 2,239
12/31 5,450
12/31 3,211
12/31 Bal. 0
CONTINUING COOKIE CHRONICLE (Continued)
(c)
COOKIE CREATIONS INC.
Trial Balance
December 31, 2017
Debit Credit
Cash ……………………………………………………………. $1,340
Accounts Receivable ……………………………………. 1,000
Website ……………………………………………………….. 600
Unearned Service Revenue ………………………….. 810
Notes Payable ……………………………………………… 2,000
Common Stock ……………………………………………. 800
Dividends…………………………………………………….. 500
Service Revenue ………………………………………….. 4,550
CONTINUING COOKIE CHRONICLE (Continued)
(e) COOKIE CREATIONS INC.
Adjusted Trial Balance
December 31, 2017
Debit Credit
Cash …………………………………………………………… $1,340
Accounts Receivable …………………………………… 1,450
Supplies ……………………………………………………… 400
Prepaid Insurance ……………………………………….. 1,100
Equipment …………………………………………………… 1,200
Accumulated Depreciation—Equipment ……….. $ 40
Website ………………………………………………………. 575
Supplies Expense ……………………………………….. 1,070
Depreciation Expense ………………………………….. 40
Amortization Expense………………………………….. 25
Interest Expense …………………………………………. 23
Insurance Expense ……………………………………… 100
CONTINUING COOKIE CHRONICLE (Continued)
(e) COOKIE CREATIONS INC.
Income Statement
For the Two Months Ended December 31, 2017
Revenue
Service revenue …………………………………… $5,450
Operating expenses
Supplies expense ………………………………… $1,070
Depreciation expense ………………………….. 40
Amortization expense ………………………….. 25
Interest expense ………………………………….. 23
COOKIE CREATIONS INC.
Retained Earnings Statement
For the Two Months Ended December 31, 2017
Retained earnings, November 1 …………………………………….. $ 0
Add: Net income ………………………………………………………….. 3,211
3,211
(Beg. R/E + net inc. – div.)
CONTINUING COOKIE CHRONICLE (Continued)
COOKIE CREATIONS INC.
Balance Sheet
December 31, 2017
Assets
Current Assets
Cash …………………………………………………… $1,340
Accounts receivable ……………………………. 1,450
Property, plant and equipment
Equipment ………………………………………….. 1,200
*(Cash + acc. rec. + sup. + prep. ins.)
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ……………………………….. $ 75
Unearned service revenue …………………… 360
Long-term liabilities
Notes payable ……………………………………… 2,000
Interest payable …………………………………… 23 2,023
Total liabilities …………………………….. 2,514
Stockholders’ equity
Common stock ……………………………………. 800
CONTINUING COOKIE CHRONICLE (Continued)
(g) 31 Service Revenue ………………………………………… 5,450
Income Summary ………………………………. 5,450
31 Income Summary ………………………………………. 2,239
Supplies Expense ……………………………… 1,070
Salaries and Wages Expense ……………… 856
31 Income Summary ………………………………………. 3,211
Retained Earnings ……………………………… 3,211
(h) COOKIE CREATIONS INC.
Post-Closing Trial Balance
December 31, 2017
Debit Credit
Cash ………………………………………………………………….. $1,340
Accounts Receivable ………………………………………….. 1,450
Supplies …………………………………………………………….. 400
Accumulated Depr.—Equip. ……………………………….. $ 40
Website ……………………………………………………………… 575
Accounts Payable ………………………………………………. 75
Interest Payable …………………………………………………. 23