Cookie Ch3

CCC3
CONTINUINGCOOKIECHRONICLE
(a)
Date
GENERALJOURNAL
AccountTitlesand Explanation
J2
Debit
Nov. 30 SuppliesExpense....................................................
Supplies............................................................
35
30 DepreciationExpense..............................................
AccumulatedDepreciationEquipment
[($300+ $900) 60 months].............................
20
30 InterestExpense.....................................................
InterestPayable
($2,000X .06 X 1/12 X .5)...................................
30 AccountsReceivable...............................................
ServiceRevenue.................................................
300
30 UtilitiesExpense.....................................................
AccountsPayable...............................................
45
Credit
35
20
300
Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions
45
3-1
CCC3(Continued)
(a) (Continued)
Date
Explanation
Nov. 30 Balance
Date
Explanation
Nov. 30
Date
Explanation
Explanation
Nov. 30 Balance
Date
Explanation
Nov. 30 Balance
Date
Nov. 30
Debit
Credit
Balance
245
AccountsReceivable
Ref.
Debit
J2
Nov. 30 Balance
30
Date
Cash
Ref.
Credit
Balance
300
Supplies
Ref.
Debit
J2
PrepaidInsurance
Ref.
Debit
300
Credit
Balance
125
90
35
Credit
Balance
Equipment
Ref.
Debit
1,320
Credit
Balance
1,200
AccumulatedDepreciationEquipment
Explanation
Ref.
Debit
Credit
Balance
20
20
3-2
CCC3(Continued)
(a) (Continued)
Date
Explanation
Nov. 30
Date
J2
Explanation
Nov. 30
Date
Explanation
Explanation
Nov. 30 Balance
Date
Explanation
Nov. 30 Balance
Date
InterestPayable
Ref.
Debit
J2
Nov. 30 Balance
Date
AccountsPayable
Ref.
Debit
Explanation
Nov. 30 Balance
30
UnearnedServiceRevenue
Ref.
Debit
Credit
Balance
45
45
Credit
Balance
Credit
Balance
NotesPayable
Ref.
Debit
30
Credit
Balance
OwnersCapital
Ref.
Debit
2,000
Credit
Balance
ServiceRevenue
Ref.
Debit
J2
800
Credit
Balance
300
125
425
3-3
CCC3(Continued)
(a) (Continued)
Date
Explanation
Nov. 30
Date
J2
Explanation
Nov. 30
Date
Explanation
Explanation
Nov. 30
Date
Nov. 30
Explanation
Credit
Balance
65
Credit
Balance
35
Credit
Balance
20
InterestExpense
Ref.
Debit
J2
45
35
DepreciationExpense
Ref.
Debit
J2
Balance
65
SuppliesExpense
Ref.
Debit
J2
Credit
45
AdvertisingExpense
Ref.
Debit
J2
Nov. 30
Date
UtilitiesExpense
Ref.
Debit
20
Credit
Balance
5
3-4
CCC3(Continued)
(b)
COOKIECREATIONS
AdjustedTrial Balance
November30, 2011
Account
Cash...................................................................................
AccountsReceivable............................................................
Supplies..............................................................................
PrepaidInsurance................................................................
Equipment...........................................................................
AccumulatedDepreciationEquipment..................................
AccountsPayable.................................................................
InterestPayable...................................................................
UnearnedServiceRevenue....................................................
NotesPayable......................................................................
OwnersCapital....................................................................
ServiceRevenue..................................................................
UtilitiesExpense..................................................................
AdvertisingExpense.............................................................
SuppliesExpense.................................................................
DepreciationExpense...........................................................
InterestExpense..................................................................
Totals....................................................................
Debit
$ 245
300
90
1,320
1,200
Credit
20
45
5
30
2,000
800
425
45
65
35
20
5
$3,325
$3,325
3-5
CCC3(Continued)
(c)
COOKIECREATIONS
IncomeStatement
For the MonthEndedNovember30, 2011
Revenues
Servicerevenue....................................................................
Expenses
Advertisingexpense.............................................................
Utilitiesexpense...................................................................
Suppliesexpense.................................................................
Depreciationexpense............................................................
Interestexpense...................................................................
Net income.................................................................................
$425
$65
45
35
20
5
170
$255
Yes, CookieCreationshasbeenprofitablein November.It has a profit of $255whichis more

thanonehalf of the revenueearnedin November.
[Note:OwnersEquityStatementis not requiredshownfor informationpurposesonly.]
COOKIECREATIONS
OwnersEquityStatement
For the MonthEndedNovember30, 2011
OwnersCapital, November1, 2011................................................
Add: Investment.........................................................................
Net income.......................................................................
OwnersCapital, November30, 2011..............................................
0
800
255
$1,055
3-6
CCC3(Continued)
(c) (Continued)
[Note:BalanceSheetis not requiredshownfor informationpurposesonly.]
COOKIECREATIONS
BalanceSheet
November30, 2011
Assets
Cash.....................................................................................
Accountsreceivable...............................................................
Supplies................................................................................
Prepaidinsurance..................................................................
Equipment.............................................................................
Less: Accumulateddepreciationequipment...........................
Total assets......................................................................
$ 245
300
90
1,320
$1,200
20
1,180
$3,135
LiabilitiesandOwnersEquity
Liabilities
Notespayable...................................................................
Accountspayable..............................................................
Unearnedservicerevenue..................................................
Interestpayable.................................................................
Total liabilities..............................................................
Ownersequity
Ownerscapital.................................................................
Total liabilitiesand ownersequity..................................
$2,000
45
30
5
2,080
1,055
$3,135
3-7

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What are the key financial statements prepared by Cookie Creations?

What revenues and expenses did Cookie Creations have in November?

CCC3

Yes, CookieCreationshasbeenprofitablein November.It has a profit of $255whichis more

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