Question

Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Natalie prepared the following adjusted trial balance.

COOKIE CREATIONS Adjusted Trial Balance December 31, 2019
		Debit		Credit
Cash		$1,180
Accounts Receivable		875
Supplies		350
Prepaid Insurance		1,210
Equipment		1,200
Accumulated Depreciation—Equipment				$40
Accounts Payable				75
Salaries and Wages Payable				56
Unearned Service Revenue				300
Notes Payable				2,000
Interest Payable				15
Common Stock				800
Dividends		500
Service Revenue				4,515
Salaries and Wages Expense		1,006
Utilities Expense		125
Advertising Expense		165
Supplies Expense		1,025
Depreciation Expense		40
Insurance Expense		110
Interest Expense		15
		$7,801		$7,801

Using the information in the adjusted trial balance, do the following.

1 ) Prepare an income statement for the 2 months ended December 31, 2019

2 ) Prepare an retained earnings statement for the 2 months ended December 31, 2019.

3 ) Prepare a classified balance sheet at December 31, 2019. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2018

4 ) Natalie has decided that her year-end will be December 31, 2019. Prepare closing entries as of December 31, 2019

5 ) Prepare a post closing trial balance

Answer 1

1. Income statement -

2. Statement Retained Earnings -

3. Classified Balance Sheet -

4. Closing Entries -

5. Post Closing Trial Balance -

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