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CCC4 Cookie Creations is gearing up for the winter holiday season

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Continuing Cookie Chronicle

(Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 3.)

CCC4 Cookie Creations is gearing up for the winter holiday season. During the month
of December 2011, the following transactions occur.

Dec. 1 Natalie hires an assistant at an hourly wage of $8 to help with cookie making
and some administrative duties.
5 Natalie teaches the class that was booked on November 25. The balance outstanding
is received.
8 Cookie Creations receives a check for the amount due from the neighborhood
school for the class given on November 30.
9 Cookie Creations receives $750 in advance from the local school board for five
classes that the company will give during December and January.
15 Pays the cell phone invoice outstanding at November 30.
16 Issues a check to Natalie’s brother for the amount owed for the design of the
19 Receives a deposit of $60 on a cookie class scheduled for early January.
23 Additional revenue earned during the month for cookie-making classes amounts
to $4,000. (Natalie has not had time to account for each class individually.)
$3,000 in cash has been collected and $1,000 is still outstanding. (This is in addition
to the December 5 and December 9 transactions.)

and so on ...


Using the information that you have gathered and the general ledger accounts that you
have prepared through Chapter 3, plus the new information above, do the following.
(a) Journalize the above transactions.
(b) Post the December transactions. (Use the general ledger accounts prepared in Chapter 3.)
(c) Prepare a trial balance at December 31, 2011.
(d) Prepare and post adjusting journal entries for the month of December.
(e) Prepare an adjusted trial balance as of December 31, 2011.
(f ) Prepare an income statement and a retained earnings statement for the 2-month period
ending December 31, 2011, and a classified balance sheet as of December 31, 2011.
(g) Prepare and post closing entries as of December 31, 2011.
(h) Prepare a post-closing trial balance.

Check figures
(c) Totals $8,160
(e) Totals $8,804
(f) Net income $3,211
(h) Totals $6,065

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