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Homework answers / question archive / Chapter 4 - CCC4 Open your corrected CCC3 file
Open your corrected CCC3 file. Complete the required activities for CCC4.
Note that this is a rather difficult problem. You are asked to prepare financial statements and prepare and post closing entries, but you were not given the specific transactions for December. Instead, you are given the Adjusted Trial Balance for Dec. 31. I recommend that you take the balances on the ATB and write them in the correct ledger accounts. Just make a note to yourself in each ledger that this is the "Dec. 31 balance." Of course, if we were REALLY doing a set of books, we would have posted the entries for Dec. and this wouldn't be necessary.
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, 2011
Debit | Credit | |
---|---|---|
Cash | $1,180 | |
Accounts Receivable | 875 | |
Supplies | 350 | |
Prepaid Insurance | 1,210 | |
Equipment | 1,200 | |
Accumulated Depreciation - Equipment | $ 40 | |
Accounts Payable | 75 | |
Salaries Payable | 56 | |
Interest Payable | 15 | |
Unearned Revenue | 300 | |
Notes Payable | 2,000 | |
Owner's Capital | 800 | |
Owner's Drawing | 500 | |
Service Revenue | 4,515 | |
Salaries and Wages Expense | 1,006 | |
Utilities Expense | 125 | |
Advertising Expense | 165 | |
Supplies Expense | 1,025 | |
Depreciation Expense | 40 | |
Insurance Expense | 110 | |
Interest Expense | 15 | |
$7,801 | $7,801 |
Using the information in the adjusted trial balance, do the following.