Question

Cookie Creations is gearing up for the winter holiday season. During the month of December 2020, 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 website.
19		Receives a deposit of $60 on a cookie class scheduled for early January.
23		Additional revenue 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.)
23		Additional baking supplies purchased during the month for sugar, flour, and chocolate chips amount to $1,250 cash.
23		Issues a check to Natalie’s assistant for $800. Her assistant worked approximately 100 hours from the time in which she was hired until December 23.
28		Pays a dividend of $500 to the common shareholder (Natalie).

The trial balance from November is shown below.

COOKIE CREATIONS INC. Trial Balance November 30, 2020
		Debit		Credit
Cash		$340
Accounts Receivable		300
Supplies		220
Prepaid Insurance		1,200
Equipment		1,200
Website		600
Accounts Payable				$650
Unearned Service Revenue				60
Notes Payable				2,000
Common Stock				800
Service Revenue				400
Utilities Expense		50
		$3,910		$3,910

As of December 31, Cookie Creations’ year-end, the following adjusting entry data are provided.

1.		A count reveals that $45 of brochures and posters (supplies) were used.
2.		Depreciation is recorded on the baking equipment purchased in November. The baking equipment has a useful life of 5 years. Assume that 2 months’ worth of depreciation is required.
3.		Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website account directly for the amount of the amortization.) The website is amortized over a useful life of 2 years and was available for use on December 1.
4.		Interest on the 9% note payable is accrued. (Assume that 1.5 months of interest accrued during November and December.)
5.		One month’s worth of insurance has expired.
6.		Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neighborhood community center on December 31. In early January Cookie Creations sends an invoice for $450 to the community center.
7.		A count reveals that $1,025 of baking supplies were used.
8.		A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15.
9.		Because the cookie-making class occurred unexpectedly on December 31 and is for such a large group of children, Natalie’s assistant helps out. Her assistant worked 7 hours at a rate of $8 per hour.
10.		An analysis of the unearned revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been taught by the end of December. The $60 deposit received on December 19 for another class also remains unearned.

Using the information gathered from above and from the November trial balance, do the following:

(a)

Journalize the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.

(a)

Journalize the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)

Journalize the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts. Round answers to decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Dec 1 No Entry No Entry 0 Dec 5 cash 90 60 Unearned Service Revenue Service Revenue 150 Dec 8 < Cash 300 Accounts Receivable 300 Dec 9 Cash 750 Unearned Service Revenue 750 Dec 15 Accounts Payable 50 Cash 50 Dec 16 Accounts Payable 600 Cash 600 Dec 19 Cash 60 Unearned Service Revenue 60 Dec 23 Cash 3000 Accounts Receivable 1000 Service Revenue 4000 Dec 23 Supplies 1250 Cash 1250 Dec 23 Salaries and Wages Expense 800 Cash 800 Dec 28 Dividends 500 Cash 500

I need help with second chart. all of the white boxes with red borders are wrong. All of the grey boxes are correct

Answer 1

SOLUTION (a) General Journal Debit Credit Date Dec. Account Titles No journal entry required. 1 5 Cash .90

60 Unearned Service Revenue.. Service Revenue.... 150 8 .300 Cash Accounts Receivable.. 300 9 .750 Cash Unearned Service Revenue... 750 15 .50 Accounts Payable.... Cash...... 50 16 600 Accounts Payable.. Cash........ 600 19 .60 Cash Unearned Service Revenue. 60 23 Cash Accounts Receivable...... Service Revenue.... .3,000 .1,000 4,000 23 Supplies.... 1,250 Cash.. 1,250 23 .800 Salaries and Wages Expense. Cash..... 800 28 .500 Dividends. Cash.... 500 (d) Date Account Titles Debit Credit (1) 31 Dec. .45 Supplies Expense.. Supplies..... 45 (2) 31 Depreciation Expense ($1,200 = 5 X 2/12)... .40

Accumulated Depreciation- Equipment... 40 (3) 31 25 Amortization Expense ($600 = 24). Website..... 25 (4) 31 .23 Interest Expense ($2,000 X .09 X 1.5/12).. Interest Payable. 23 (5) 31 100 Insurance Expense ($1,200 – 12). Prepaid Insurance......... 100 (6) 31 ..450 Accounts Receivable... Service Revenue... 450 31 1,025 Supplies Expense. Supplies.. 1,025 (8) 31 .75 Utilities Expense.... Accounts Payable..... 75 (9) 31 .56 Salaries and Wages Expense ($8 X 7)... Salaries and Wages Payable.... 56 (10) 31 .450 Unearned Service Revenue ($750 = 3/5). Service Revenue.......... 450 (b), (d), and (g) Accumulated Depreciation-Equipment 50 40 11/30 Bal. 12/5 12/8 Cash 340 12/15 90 12/16 300 12/23 11/30 12/31 Bal. 40 600 1,250

Dividends 500 12/31 Depreciation Expense 40 12/31 40 12/28 12/31 Bal. 500 12/31 12/31 Bal. 0 0 Interest Expense 23 | 12/31 23 12/31 12/31 Income Summary 2,239 12/31 3,211 12/31 Bal. 5,450 12/31 12/31 Bal. 0 0 Insurance Expense 100 | 12/31 100 0 Service Revenue 11/30 Bal. 12/5 12/23 12/31 5,450 12/31 12/31 Bal. 400 12/31 150 12/31 Bal. 4,000 450 450 12/31 Amortization Expense 25 12/31 0 0 12/31 12/31 Bal. 25 11/30 Bal. 12/31 12/31 Bal. Utilities Expense 50 75 12/31 0 125

  
800 500 12/9 12/19 12/23 12/31 Bal. 750 12/23 60 | 12/28 3,000 1,340 Website 600 12/31 575 11/30 Bal. 12/31 Bal. 25 Accounts Receivable 300 12/8 1,000 450 11/30 Bal. 12/23 12/31 12/31 Bal. 300 12/15 12/16 Accounts Payable 50 11/30 Bal. 600 12/31 12/31 Bal. 650 75 75 1,450 Interest Payable 12/31 12/31 Bal. 23 23 45 11/30 Bal. 12/23 12/31 Bal. Supplies 220 12/31 1,250 | 12/31 400 1,025 Salaries and Wages Payable 12/31 12/31 Bal. 56 56 11/30 Bal. 12/31 Bal. Prepaid Insurance 1,200 12/31 1,100 100 12/5 12/31 Unearned Service Revenue 60 | 11/30 Bal. 450 12/9 12/19 12/31 Bal. 60 750 60 360 11/30 Bal. 12/31 Bal. Equipment 1,200 1,200 Notes Payable 11/30 Bal. 12/31 Bal. 2,000 2,000 Common Stock 11/30 Bal. 12/31 Bal. Salaries and Wages Expense 800 12/23 800 800 12/31 56 12/31 12/31 Bal. 0 856 12/31 Retained Earnings 500 11/30 Bal. 12/31 Bal. 1,070 Supplies Expense 3,211 12/31 45 12/31 2,711 12/31 1,025 12/31 Bal. 0

Dividends 500 12/31 Depreciation Expense 40 12/31 40 12/28 12/31 Bal. 500 12/31 12/31 Bal. 0 0 Interest Expense 23 | 12/31 23 12/31 12/31 Income Summary 2,239 12/31 3,211 12/31 Bal. 5,450 12/31 12/31 Bal. 0 0 Insurance Expense 100 | 12/31 100 0 Service Revenue 11/30 Bal. 12/5 12/23 12/31 5,450 12/31 12/31 Bal. 400 12/31 150 12/31 Bal. 4,000 450 450 12/31 Amortization Expense 25 12/31 0 0 12/31 12/31 Bal. 25 11/30 Bal. 12/31 12/31 Bal. Utilities Expense 50 75 12/31 0 125