Research: Income Statement and Laser Recording Systems
(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 and January.
Pays the cell phone invoice outstanding at November 30. Issues a check to Natalie’s brother for the amount owed for the design of the website. Receives a deposit of $60 on a cookie class scheduled for early January. 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 ad- dition to the December 5 and December 9 transactions.) Additional baking supplies purchased during the month for sugar, flour, and chocolate chips amount to $1,250 cash. Issues a check to Natalie’s assistant for $800. Her assistant worked approxi- mately 100 hours from the time in which she was hired until December 23. Pays a dividend of $500 to the common shareholder (Natalie).
As of December 31, Cookie Creations’ year-end, the following adjusting entry data are provided. 1. A count reveals that $45 of brochures and posters were used. 2. Depreciation is recorded on the baking equipment purchased in November. The bak- ing equipment has a useful life of 5 years. Assume that 2 months’ worth of depreci- ation is required. 3. Amortization (which is
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 and January.
Pays the cell phone invoice outstanding at November 30. Issues a check to Natalie’s brother for the amount owed for the design of the website. Receives a deposit of $60 on a cookie class scheduled for early January. 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 ad- dition to the December 5 and December 9 transactions.) Additional baking supplies purchased during the month for sugar, flour, and chocolate chips amount to $1,250 cash. Issues a check to Natalie’s assistant for $800. Her assistant worked approxi- mately 100 hours from the time in which she was hired until December 23. Pays a dividend of $500 to the common shareholder (Natalie).
As of December 31, Cookie Creations’ year-end, the following adjusting entry data are provided. 1. A count reveals that $45 of brochures and posters were used. 2. Depreciation is recorded on the baking equipment purchased in November. The bak- ing equipment has a useful life of 5 years. Assume that 2 months’ worth of depreci- ation is required. 3. Amortization (which is