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, 2019 Debit Credit $970 720 290 990 1,000 Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Interest Payable Unearned Service Revenue Notes Payable Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Utilities Expense Advertising Expense Supplies Expense Depreciation Expense Insurance Expense Interest Expense 250 1,600 650 3,759 $6,415 $5,415

Answer 1

Amount Amount $3,759 Cookie Creation Income Statement For the year ended Dec 31, 2019 Particulars Revenue Service Revenue Less: Expenses Saalries and wages expense Utilities Expense Advertising expense Supplies Expense Depreciation Expense Insurance Expense Interest Expense Total Expense Net Income /(Loss) $825 $105 $135 $840 $30 $90 $10 ($2,035) $1,724 Cookie Creation Statement of Owners' Equity For the year ended Dec 31, 2019 Particulars Beginning Capital Balance Add: Net Income/(Loss) Amount $660 $1,724 $2,384 ($410) $1,974 Less: Withdrawal Ending Capital Balance

Amount Amount Assets Current Assets Cash Account Receivable Supplies Prepaid Insurance Cookie Creation Balance Sheet as of Dec 31, 2019 Amount Amount Liabilities Current Liabilities $970 Accounts Payable $720 Interest Payable $290 Salaries and Wages Payable $990 Unearned Service Revenue Total Current Liabilities $2,970 $60 $10 $46 $250 $366 Total Current Assets Notes Payable Total Liabilities $1,600 $1,966 Property, Plant & Equipment Equipment Less: Accumulated Deprecation - Equipment Net Property, Plant & Equipment $1,000 ($30) $970 Owners' Equity Capital $3,940 Total Liabilities & Owners' Equity $1,974 Total Assets $3,940

Date Dec 31 Dec 31 Post Closing Trial Balance Following Closing entry need be passed for preparing closing trail balance Particulars Debit Credit Service Revenue $3,759 Income Summary $3,759 (To close the revenue account) Income Summary $2,035 Saalries and wages expense $825 Utilities Expense $105 Advertising expense $135 Supplies Expense $840 Depreciation Expense $30 Insurance Expense $90 Interest Expense $10 (To close expense account) Income Summary $1,724 Owners' Capital $1,724 (To close net income /(loss)) Owners' Capital $410 Owners' Drawings $410 (To close drawings) Dec 31 Dec 31

Debit Credit Cookie Creation Post Clsoing Trail Balance December 31 2019 Particulars Cash Account Receivable Supplies Prepaid Insurance Equipment Accumulated Deprecation - Equipment Accounts Payable Interest Payable Salaries and Wages Payable Unearned Service Revenue Notes Payable Owners' Capital Total $970 $720 $290 $990 $1,000 $30 $60 $10 $46 $250 $1,600 $1,974 $3,970 $3,970