Reference no: EM133111220
Question - 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, 2021
|
|
Debit
|
Credit
|
|
Cash
|
$1,440
|
|
|
Accounts Receivable
|
1,070
|
|
|
Supplies
|
430
|
|
|
Prepaid Insurance
|
1,480
|
|
|
Equipment
|
1,500
|
|
|
Accumulated Depreciation-Equipment
|
|
$50
|
|
Accounts Payable
|
|
90
|
|
Salaries and Wages Payable
|
|
68
|
|
Interest Payable
|
|
20
|
|
Unearned Service Revenue
|
|
370
|
|
Notes Payable
|
|
2,400
|
|
Owner's Capital
|
|
980
|
|
Owner's Drawings
|
610
|
|
|
Service Revenue
|
|
5,584
|
|
Salaries and Wages Expense
|
1,227
|
|
|
Utilities Expense
|
155
|
|
|
Advertising Expense
|
200
|
|
|
Supplies Expense
|
1,250
|
|
|
Depreciation Expense
|
50
|
|
|
Insurance Expense
|
130
|
|
|
Interest Expense
|
20
|
|
|
$9,562
|
$9,562
|
Required - Using the information in the adjusted trial balance, do the following.
(a1) Prepare an income statement for the 2 months ended December 31, 2021.
(a2) Prepare an owner's equity statement for the 2 months ended December 31, 2021.
(a3) Prepare a classified balance sheet at December 31, 2021. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2023.
(b) Natalie has decided that her year-end will be December 31, 2021. Prepare closing entries as of December 31, 2021.
(c) Prepare a post-closing trial balance.