Continuing Cookie Chronicle In excel format

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 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 the 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 unexpected cookie-making class on December 31 was 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 Service 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.

(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