Continuing Cookie Chronicle Chapter 3

(a)

GENERAL JOURNAL J2
Date Account Titles and Explanation Debit Credit
Nov. 30 Advertising Supplies Expense ($95 $75) 20
Advertising Supplies 20

30 Baking Supplies Expense 25

Baking Supplies 25

30 Depreciation ExpenseBaking Equipment 20

Accumulated Depreciation
Baking Equipment ($1,200 60) 20

30 Interest Expense ($2,000 X .06 X .5/12) 5

Interest Payable 5

30 Accounts Receivable 250

Teaching Revenue 250

30 Telephone Expense 50
Accounts Payable 50

Cash
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 305

Accounts Receivable
Date Explanation Ref. Debit Credit Balance
Nov. 30 J2 250 250

Advertising Supplies
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 95
30 J2 20 75
 Baking Supplies
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 125
30 J2 25 100

Prepaid Insurance
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 1,200

Baking Equipment
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 1,200

Accumulated DepreciationBaking Equipment

Date Explanation Ref. Debit Credit Balance
Nov. 30 20 20

Website
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 600

Accounts Payable
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 600
30 J2 50 650

Interest Payable
Date Explanation Ref. Debit Credit Balance
Nov. 30 J2 5 5

Unearned Revenue
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 25
 Notes Payable
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 2,000

Common Stock
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 800

Teaching Revenue
Date Explanation Ref. Debit Credit Balance
Nov. 30 Balance 100
30 J2 250 350

Telephone Expense
Date Explanation Ref. Debit Credit Balance
Nov. 30 J2 50 50

Advertising Supplies Expense

Date Explanation Ref. Debit Credit Balance
Nov. 30 J2 20 20

Baking Supplies Expense

Date Explanation Ref. Debit Credit Balance
Nov. 30 J2 25 25

Depreciation ExpenseBaking Equipment

Date Explanation Ref. Debit Credit Balance
Nov. 30 J2 20 20

Interest Expense
Date Explanation Ref. Debit Credit Balance
Nov. 30 J2 5 5
(b)
COOKIE CREATIONS
Adjusted Trial Balance
November 30, 2005

Debit Credit
Cash.............................................................................................. $305
Accounts Receivable.................................................................... 250
Advertising Supplies..................................................................... 75
Baking Supplies............................................................................ 100
Prepaid Insurance......................................................................... 1,200
Baking Equipment........................................................................ 1,200
Accumulated DepreciationBaking Equipment........................... $ 20
Website......................................................................................... 600
Accounts Payable......................................................................... 650
Interest Payable............................................................................. 5
Unearned Revenue........................................................................ 25
Note Payable................................................................................. 2,000
Common Stock............................................................................. 800
Teaching Revenue......................................................................... 350
Telephone Expense....................................................................... 50
Advertising Supplies Expense...................................................... 20
Baking Supplies Expense............................................................. 25
Depreciation ExpenseBaking Equipment................................. 20
Interest Expense............................................................................ 5 0,000
Totals............................................................................................ $3,850 $3,850
(c)
COOKIE CREATIONS
Income Statement
Month Ended November 30, 2005

Revenues
Teaching revenue................................................................... $350
Expenses
Telephone expense................................................................. $50
Baking supplies expense........................................................ 25
Advertising supplies expense................................................. 20
Depreciation expense............................................................. 20
Interest expense...................................................................... 5 120
Net income.................................................................................... $230

COOKIE CREATIONS
Retained Earnings Statement
For the Month Ended November 30, 2005

Retained earnings, November 1............................................................................ $0

Add: Net income................................................................................................... 230
Deduct: Dividends Declared................................................................................. 0
Retained earnings, November 30......................................................................... $230
 COOKIE CREATIONS
Balance Sheet
November 30, 2005

Assets
Cash.................................................................................................... $ 305
Accounts receivable............................................................................ 250
Advertising supplies........................................................................... 75
Banking supplies................................................................................. 100
Prepaid insurance................................................................................ 1,200
Website................................................................................................ 600
Baking equipment............................................................................... $1,200
Less: Accumulated depreciationbaking
equipment................................................................................. 20 1,180
Total assets............................................................................... $3,710

Liabilities and Stockholders Equity

Liabilities
Notes payable................................................................................................... $2,000
Accounts payable............................................................................................. 650
Interest payable................................................................................................ 5
Unearned revenue............................................................................................ 25
Total liabilities........................................................................................... 2,680

Stockholders equity
Common stock..................................................................................................
$800
Retained earnings.............................................................................................230 1,030
Total liabilities and stockholders equity..................................................... $3,710