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Natalie had a very busy December. At the end of the month, after journalizing an

ID: 2462598 • Letter: N

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, 2016

Debit

Credit

Cash

Accounts Receivable

Supplies

Prepaid Insurance

Equipment

Accumulated Depreciation—Equipment

Accounts Payable

Salaries and Wages Payable

Unearned Service Revenue

Notes Payable

Interest Payable

Common Stock

Dividends

Service Revenue

Salaries and Wages Expense

Utilities Expense

Advertising Expense

Supplies Expense

Depreciation Expense

Insurance Expense

Interest Expense

$7,801

$7,801


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

Prepare a classified balance sheet at December 31, 2016. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2018. (List Current assets in order of liquidity.)

COOKIE CREATIONS
Adjusted Trial Balance
December 31, 2016

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

Explanation / Answer

Balance Sheet

Net Amount (in $)

Liabilities and Share Holders Equity

Assets Adjustments

Net Amount (in $)

Cash 1180 Account Recievables 875 Supplies 350 Prepaid Inurance 1210 Equipment 1200 Depreciation -40 1160 Total Assets 4775
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