Principles of accounting

Instructions

Cookie Creations (Chapter 4)

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This assignment is a continuation of the Cookie Creations case study from Chapters 1–3. You will use the information from the previous chapters and from this chapter to complete the actions for the case study and to apply what you have learned to this point.

The Cookie Creations case study for Chapter 4 can be found below and also on pp. 4-51 to 4-52 in the textbook. The textbook provides you with the adjusted trial balance, and it is also located below for quick reference. Read the case information, and complete the actions listed below.

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.

Using the information from the adjusted trial balance, complete the tasks below.

Prepare an income statement and an owner’s equity statement for the 2 months ended December 31, 2019, and a classified balance sheet as of December 31, 2019. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2021.
Natalie has decided that her year-end will be December 31, 2019. Prepare and post-closing entries as of December 31, 2019.
Prepare a post-closing trial balance.

Make sure to complete item “a” completely before moving to item “b,” and then move to item “c.” You cannot jump ahead unless you have completed each step sequentially in full.

Submit the Excel document in Blackboard upon completion.

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