Unit 4 Case Study Accounting Cookie Creations (Chapter 4)_Answered, Exams of Advanced Education

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Unit 4 Case Study Accounting: Cookie Creations (Chapter

4)_Answered

Unit 4 Case Study Accounting

Instructions

Cookie Creations (Chapter 4)

This assignment is a continuation of the Cookie Creations

case study from Chapters 1–3. You will use the

information from the previous chapters and from this

chapter to complete the actions for the case study and to

apply what you have learned to this point.

The Cookie Creations case study for Chapter 4 can be

found below and also on pp. 4-51 to 4-52 in the textbook.

The textbook provides you with the adjusted trial balance,

and it is also located below for quick reference. Read the

case information, and complete the actions listed below.

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.

ahead unless you have completed each step sequentially

in full.

Submit the Excel document in Blackboard upon

completion.

Answer & Explanation

Income statement , for the year Dec 31, 2019 Total Revenue $4,515.00 - Total expenses $2,486.00 = Net income $2,029. Owner's Equity , for the year Dec 31, 2019 Capital Beginning,Owner's $800.00 + Net income $2,029.00 - Withdrawals,Owner's $500.00 = Capital ending,Owner's $2,329. Balance sheets As on Dec 31, 2019 Total current Assets $3,615.00 + Equipment $1,160.00 = Total Assets $4,775. Total liability $2,446.00 + Total Owner's Equity $2,329.00 = Total liability &Owner equity $4,775. Total Current Liability $446.00 + Notes Payable $2,000.00 = Total liability $2,446. Closing Journal entries in the books of ....... Dec-31 Service Revenue (Debit) $4,515.00 Income Summary (Credit) $4,515. Dec-31 Income Summary (Debit) $2,486.00 Salary & Wages Expenses (Credit) $1,006.00 Utilities Expenses (Credit) $125.00 Advertising Expenses (Credit) $165.00 Supplies expenses (Credit) $1,025.00 Depreciation expenses — Equipment (Credit) $40.00 Insurance Expenses (Credit) $110.00 Interest Expenses (Credit) $15. Dec-31 Income Summary (Debit) $2,029.00 Owner's, Capital (Credit) $2,029. Dec-31 Owner's, Capital (Debit) $500.00 Owner's, Drawing (Credit) $500. Post Closing trial balance Cash (Debit) $1,180.00 + Account receivable (Debit) $875.00 + Supplies (Debit) $350.00 + Prepaid Insurance (Debit) $1,210.00 + Equipment (Debit) $1,200.00 = Total $4, Accumulated depreciation—Equipment (Credit) $40.00 + Accounts payable (Credit) $75.00 + Salary & Wages payable (Credit) $56.00 + Interest Payable (Credit) $15.00 + Unearned Service Revenue (Credit) $300.00 + Note payable (Credit) $2,000.00 + Capital,Owner's (Credit) $2,329.00 = Total $4,