Homework SourseContinuing Cookie Chronicle Note This is a continuation of t
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.
Dec. 5 Natalie teaches the class that was booked on November 25. The balance outstanding is received.
Dec. 8 Cookie Creations receives a check for the amount due from the neighborhood school for the class given on November 30.
Dec. 9 Cookie Creations receives $750 in advance from the local school board for five classes that the company will give during December and January.
Dec. 15 Pays the cell phone invoice outstanding at November 30.
Dec. 16 Issues a check to Natalie’s brother for the amount owed for the design of the website.
Dec. 19 Receives a deposit of $70 on a cookie class scheduled for early January.
Dec. 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.)
Dec. 23 Additional baking supplies purchased during the month for sugar, flour, and chocolate chips amount to $1,250 cash.
Dec. 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.
Dec. 28 Pays a dividend of $600 to the common shareholder (Natalie).
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.)
ccount Titles Debit Credit 340 300 220 1,200 1,200 600 Cash Accounts Receivable Supplies Prepaid Insurance quipment Website Accounts Payable nearned Service Revenue Notes Pavable Common Stock Service Revenue tilities Expense 650 60 2,000 800 400 50 3,910 3,910Solution
Part A, journalize the transactions Date Account Titles and Explanation Debit Credit Dec.1 No Entry Dec.5 Cash $90 Unearned Revenue $60 Service Revenue $150 (Nov. 25 class paid for) Dec.8 Cash $300 Accounts Receivables $300 (Received payment for Nov. 30 elementary class) Dec.9 Cash $750 Unearned Revenue $750 (Advanced payment for services to be provided in Dec. and Jan.) Dec.15 Accounts Payable $50 Cash $50 (Paid Cell Phone bill received Nov. 30) Dec.16 Accounts Payable $600 Cash $600 (Paid for website design) Dec.19 Cash $60 Unearned Revenue $60 (Advanced payment for services to be provided in Jan.) Dec.23 Cash $3,000 Accounts Receivables $1,000 Service Revenue $4,000 (Services performed in Dec. Dec.23 Baking Supplies $1,250 Cash $1,250 (Purchased Baking Needs) Dec.23 Salaries Expense $800 Cash $800 (Paid to Natalie\'s Assistant) Dec. 28 Dividend $600 Cash $600 (Paid Dividend)
