Cookie Creations

Adjusted Trial Balance

Tuesday, December 31, 2013
Debit Credit

Cash  $ 2,929.00 

A/R  $ 675.00 

Supplies  $ 95.00 

Equipment  $ 1,550.00 

Acc Dep - Equipment  $ 78.00 

A/P  $ 76.00 

Salaries Payable  $ 48.00 

Unearned Revenue  $ 100.00 

Interest Payable  $ 8.00 

Notes Payable (Due 11/14)  $ 3,000.00 

N. Koebel, Capital  $ 1,450.00 

Revenue  $ 1,225.00 

Advertising Expense  $ 325.00 

Salaries Expense  $ 48.00 

Telephone Expense  $ 174.00 

Supplies Expense  $ 103.00 

Depreciation Expense  $ 78.00 

Interest Expense  $ 8.00 

Totals  $ 5,985.00   $ 5,985.00 

 Cookie Creations
Income Statement
For the 2 months ended December 31, 2013

Revenue:

Revenue

Expense:

Advertising Expense  $ 325.00 

Salaries Expense  $ 48.00 

Telephone Expense  $ 174.00 

Supplies Expense  $ 103.00 

Depreciation Expense  $ 78.00 

Interest Expense  $ 8.00 

Total Expense

Net Income
r 31, 2013

 $ 1,225.00 

$736.00

$489.00
 Cookie Creations
Statement of Owner's Equity
For the 2 months ended December 31, 2013

N. Koebel, Capital Jan 1  $ 1,450.00 

Add: Net income $489.00

Less: Drawing

Increase Owners Equity $1,939.00

N. Koebel, Capital Dec 31 $1,939.00

3
 Cookie Creations
Classified Balance Sheet
31-Dec-19

Current Assets:

Cash  $ 2,929.00 

A/R  $ 675.00 

Supplies  $ 95.00 

Total Current Assets

Long Term Asset

Equipment  $ 1,550.00 

Total Assets

Current Liabilities

Acc Dep - Equipment  $ 78.00 

A/P  $ 76.00 

Salaries Payable  $ 48.00 

Unearned Revenue  $ 100.00 

Total Current Liabilities

Long Term Liabilities

Interest Payable  $ 8.00 

Notes Payable (Due 11/14)  $ 3,000.00 

Total Long Term Liabilities

Total Liabilities

Owners Equity $1,939.00

Total Liabilities + Owners Equity

$3,699.00

$5,249.00

$302.00

$3,008.00

$3,310.00

$5,249.00
Working
Capital $3,497.00

Current
Ratio $18.30

Acid Test
Ratio 25.9
Closing
Entries:

Date Particulars PR Debit

Dec 31 Service Revenue  $ 1,225.00 

Income Summary

Dec 31 Income Summary $736.00

Advertising Expense

Salaries Expense

Telephone Expense

Supplies Expense

Depreciation Expense

Interest Expense

Dec 31 Income Summary $1,939

Owners Captial
Credit

$1,225.00

 $ 325.00 

 $ 48.00 

 $ 174.00 

 $ 103.00 

 $ 78.00 

 $ 8.00 

$1,939.00
Post Closing Trial Balance

Debit Credit
Cash  $ 2,929.00 

A/R  $ 675.00 

Supplies  $ 95.00 

Equipment  $ 1,550.00 

Acc Dep - Equipment  $ 78.00 

A/P  $ 76.00 

Salaries Payable  $ 48.00 

Unearned Revenue  $ 100.00 

Interest Payable  $ 8.00 

Notes Payable (Due 11/14)  $ 3,000.00 

N. Koebel, Capital $1,939.00

Totals $5,249.00 $5,249.00

F) response to textbook question: