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Name Section Date (a)

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Cookie Creations Inc.

Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 15 Dec. 1 5

Account Titles

Debit

Credit 1 2 3 90 4 5 6 300 7 8 9 10 750 11 12 50 13 50 14 15 16 600 17 18 19 60 20 21 22 3000 23 24 25 26 1000 27 28 29 1250 30 31 32 800 33 34 35 500 36 500 37 38 39 8400 40

Cash Teaching Revenue (Remaing amount for class on Dec 5) Cash Accounts Receivable (Payement for class on Nov 30) Cash Unearned Revenue (Payment for classes in Dec and Jan) Accounts Payable Cash (payment for Telephone Service) Accounts Payable Cash (payment for Website) Cash Unearned Revenue (deposit for class in Jan) Cash Teaching Revenue (Payment for classes in Dec and Jan) Accounts Receivable Teaching Revenue (Revenue for classes taught) Baking Supplies Cash (Baking supplies,- flour, sugar, chocolate chips) Salaries Expense Cash (Salary for Assistant- 100 hrs @ 8.00/hr) Dividends Cash (Paid a cash dividend) 800

90

300

750

16

600

19

60

23

3000

23

1000

23

1250

23

28

8400

Name Section Date (d)

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Continued Cookie Creations Inc.

Date 1 Dec. 31 2 (1) 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 31 (2)

Account Titles Advertising Supplies Expense Advertising Supplies (To record supplies used) Depreciation Expense Accumulated Depreciation- Baking Equipment (To record two months depreciation)

Debit 45

Credit 1 45 2 3 4 5 40 6 7 8 9 25 10 11 12 13 23 14 15 16 17 100 18 19 20 21 450 22 23 24 25 1025 26 27 28 29 75 30 31 32 33 56 34 35 36 37 450 38 39 40

40

31 (3) 31 (4) 31 (5) 31 (6) 31 (7) 31 (8) 31 (9) 31 (10)

Ammortizied Expense Website (Ammortization of website for one month) Interest Expense Interest Payable (Interest paid for 1.5 months) Insurance Expense Prepaid Insurance (to record insurance expired) Accounts Receivable Teaching Revenue (to record revenue for class) Baking Supplies Expense Baking Supplies (to record baking supplies used) Telephone Expense Accounts Payable (to record telephone service charges) Salary Expense Salary Payable (to record salary for assitant) Unearned Revenue Teaching Revenue (to record classes not taught to date)

25

23

100

450

1025

75

56

450

Name Section Date

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Continued Cookie Creations Inc.

(b), (d), and (g) 11/30 Bal Dec 5 Dec 8 Dec 9 Dec 19 Dec 23 Balance Cash 340 15-Dec 90 16-Dec 300 23-Dec 750 60 3000 4540 1340 23-Dec 28-Dec 50 600 1,250 800 500 3,200 15-Dec 16-Dec 11/30 Bal Balance Website 600 31-Dec 575 Accounts Payable 50 11/30 Bal 600 12/31/2010 Balance Accounts Receivable 11/30 Bal 300 8-Dec 23-Dec 1000 31-Dec Adj. 450 Balance 1450 300 Interest Payable 31-Dec Adj. 25

650 75 75

23

Balance Advertising Supplies 95 Dec 31 50 Baking Supplies 125 Dec 31 1250 350 Salaries Payable 12/31/2010 Adj. 45 Balance Unearned Revenue 12/31/2010 Adj. 60 11/30 Bal 12/31/2010 Adj. 450 9-Dec 12/19/2010 Balance Prepaid Insurance 1,200 31-Dec 1100 Baking Equipment 1,200 Common Stock 11/30 Bal Notes Payable 11/30 Bal

23 Adj. 56

11/30 Bal Balance

56 60 750 60 360

11/30 Bal 23-Dec Balance

1025

11/30 Bal Balance

Adj. 100

2,000

11/30 Bal

800

Accumulated Depreciation, Baking Equipment 31-Dec Adj. 40 Balance 40

Retained Earnings

Name Section Date

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Continued Cookie Creations Inc.

(b), (d), and (g) (Continued) 28-Dec Balance Dividends 500 500 Income Summary 31-Dec Balance Depreciation Expense Adj. 40 40

Amortization Expense 12/31/2010 Adj. 25 Balance 25 Interest Expense 23 23

Teaching Revenue 11/30 Bal 5-Dec 23-Dec 23-Dec 31-Dec 31-Dec Balance 11/30 Bal Dec 31 Balance Telephone Expense 50 75 125 Salaries Expense 800 Adj. 56 856

12/31/2010 400 150 3,000 1,000 Adj. 450 Adj. 450 5,450 Balance

Insurance Expense 31-Dec Adj. 100 Balance 100

Baking Supplies Expense 12/31/2010 Adj. 1025 Balance 1,025

Dec 23 Dec 31 Balance

Advertising Supplies Expense 31-Dec Adj. 45 Balance 45

Name Section Date (c)

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Continued Cookie Creations Inc.

COOKIE CREATIONS INC. Trial Balance December 31, 2009 Account 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Cash Accounts Receivable Advertising Supplies Baking Supplies Prepaid Insurance Baking Equipment Website Accounts Payable Unearned Revenue Notes Payable Common Stock Dividends Teaching Revenue Telephone Expense Salaries Expense

Debit 1340 1000 95 1375 1200 1200 600 0

Credit 1 2 3 4 5 6 7 08 870 9 2000 10 800 11 12 4490 13 14 15 8160 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

500 50 800 8160 .

Name Section Date (d)

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Continued Cookie Creations Inc.

COOKIE CREATIONS INC. Adjusted Trial Balance December 31, 2009 Account 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Cash Accounts Receivable Advertising Supplies Baking Supplies Prepaid Insurance Baking Equipment Accumulated Depreciation - Baking Equipment Website Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable Common Stock Dividends Teaching Revenue Telephone Expense Salaries Expense Advertising Supplies Expense Depreciation Expense Amortization Expense Interest Expense Insurance Expense Baking Supplies Expense

Debit 1340 1450 50 350 1100 1200 575

Credit 1 2 3 4 5 6 40 7 8 75 9 23 10 56 360 2000 800 500 125 856 45 40 25 23 100 1025 8804 11 12 13 14 15

5450 16 17 18 19 20 21 22 23 24 8804 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

Name Section Date (f)

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Continued Cookie Creations Inc.

COOKIE CREATIONS INC. Income Statement For the Two Months Ended December 31, 2009 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Revenues: Teaching Revenue Expenses: Salary Expense Telephone Expense Advertising Expense Depreciation Expense Ammortization Expense Interest Expense Insurance Expense Baking Supplies Expense Net Income: 5450 856 125 45 40 25 23 100 1025 -2239 3211 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

COOKIE CREATIONS INC. Retained Earnings Statement For the Two Months Ended December 31, 2009 1 2 3 4 5 6 7 8 9 10 Beginning Retained Earnings Add: Net Income Less: Dividends Ending Retained Earnings 0 3211 -500 2711 1 2 3 4 5 6 7 8 9 10

Name Section Date

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Continued Cookie Creations Inc.

(f) (Continued) COOKIE CREATIONS INC. Balance Sheet December 31, 2009 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Liabilities and Stockholders' Equity Accounts Payable Salaries Payable Interest Payable Unearned Revenue Notes Payable Total Liabilities Common Stock Retained Earnings Total Stockholders Equity 75 56 23 360 2000 2514 800 2711 3511 Assets Cash Accounts Receivable Baking Supplies Advertising Supplies Prepaid Insurance Baking Equipment (less 2 mo depreciation) Website (Less 1.5 mo ammrtization) Total Assets 1340 1450 350 50 1100 1160 575 6025 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

Total Liabilities and Stockholders Equity

6025

Name Section Date (g)

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Continued Cookie Creations Inc.

Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 31 Dec 31

Account Titles Teaching Revenue Income Summary (to close revenue account) Income Summary Salary Expense Telephone Expense Advertising Expense Deprcecation Expense Ammortization Expense Interest Expense Insurance Expense (to close expense account) Income Summary Retained Earnings

Debit 5450

Credit 1 5450 2 3 4 5 856 6 125 7 45 8 40 9 25 10 23 11 100 12 13 14 15 3,211 16 17 18 19 500 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

31 2239

3211

31

(to close net income to retained earnings) Retained Earnings Dividends (to close dividneds to retained earnings) 500

Name Section Date (h)

Corrine Wapelhorst ACCT 502 10.27.10

Chapter 4 Continuing Cookie Chronicle Concluded Cookie Creations Inc.

COOKIE CREATIONS INC. Trial Balance December 31, 2009 Debit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Cash Accounts Receivable Advertising Supplies Baking Supplies Prepaid Insurance Baking Equipment Accumulated Depreciation, Baking Equipment Website Accounts Payable Interest Payable Salaries Payable Unearned Revenue Notes Payable Common Stock Retained Earnings 6065 1340 1450 50 350 1100 1200 575 Credit 1 2 3 4 5 6 40 7 8 75 9 23 10 56 360 2000 800 2711 11 12 13 14 15

6065 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39

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