Research: Income Statement and Laser Recording Systems Essay

1446 WordsFeb 8, 20136 Pages
(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. Continuing Cookie Chronicle 219 Dec. 1 5 8 9 15 16 19 23 23 23 28 Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some administrative duties.
Natalie teaches the class that was booked on November 25. The balance out- standing is received. Cookie Creations receives a check for the amount due from the neighborhood school for the class given on November 30.
Cookie Creations receives $750 in advance from the local school board for five classes that the company will give during December…show more content…
4. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued 
during November and December.) Round to nearest dollar. 5. One month’s worth of insurance has expired. 6. NatalieisunexpectedlytelephonedonDecember28togiveacookieclassattheneigh- 
borhood 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 28 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 Decem- ber. The $60 deposit received on December 19 for another class also remains unearned. Instructions 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.

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