Continuing Cookie Chronicle 5 Date Account Titles and Explanation Debit Credit J
ID: 2474495 • Letter: C
Question
Continuing Cookie Chronicle 5
Date
Account Titles and Explanation
Debit
Credit
Jan. 28
SHOW LIST OF ACCOUNTS
Cash
Date
Explanation
Debit
Credit
Balance
Balance
Accounts Receivable
Date
Explanation
Debit
Credit
Balance
Balance
Inventory
Date
Explanation
Debit
Credit
Balance
Supplies
Date
Explanation
Debit
Credit
Balance
Balance
Prepaid Insurance
Date
Explanation
Debit
Credit
Balance
Balance
Equipment
Date
Explanation
Debit
Credit
Balance
Balance
Accumulated Depreciation—Equipment
Date
Explanation
Debit
Credit
Balance
Balance
Website
Date
Explanation
Debit
Credit
Balance
Balance
Accounts Payable
Date
Explanation
Debit
Credit
Balance
Balance
Salaries and Wages Payable
Date
Explanation
Debit
Credit
Balance
Balance
Interest Payable
Date
Explanation
Debit
Credit
Balance
Balance
Unearned Service Revenue
Date
Explanation
Debit
Credit
Balance
Balance
Notes Payable
Date
Explanation
Debit
Credit
Balance
Balance
Common Stock
Date
Explanation
Debit
Credit
Balance
Balance
Retained Earnings
Date
Explanation
Debit
Credit
Balance
Balance
Dividends
Date
Explanation
Debit
Credit
Balance
Sales Revenue
Date
Explanation
Debit
Credit
Balance
Cost of Goods Sold
Date
Explanation
Debit
Credit
Balance
Salaries and Wages Expense
Date
Explanation
Debit
Credit
Balance
Freight-out
Date
Explanation
Debit
Credit
Balance
SHOW LIST OF ACCOUNTS
COOKIE CREATIONS INC.
Trial Balance
January 31, 2015
Debit
Credit
Continuing Cookie Chronicle 5
Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is to become the exclusive distributor of a line of fine European mixers. The current cost of a mixer is approximately $550, and Natalie would sell each one for $1,100. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified.In the end, Natalie decides to use the perpetual method of accounting for inventory, and the following transactions happen during the month of January.
Jan. 4 She buys five deluxe mixers on account from Kzinski Supply Co. for $2,750, terms n/30. 6 She pays $100 freight on the January 4 purchase. 7 Natalie returns one of the mixers to Kzinski because it was damaged during shipping. Kzinski issues Cookie Creations credit for the cost of the mixer plus $20 for the cost of freight that was paid on January 6 for one mixer. 8 She collects the amount due from the neighborhood community center that was accrued at the end of December 2014. 12 She sells three deluxe mixers on account for $3,300, FOB destination, terms n/30. The mixers cost $570 each (including freight). 13 Natalie pays her cell phone bill previously accrued in the December adjusting journal entries. 14 She pays $75 of delivery charges for the three mixers that were sold on January 12. 14 She buys four deluxe mixers on account from Kzinski Supply Co. for $2,200, terms n/30. 17 Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She issues additional common stock for $1,000. 18 She pays $80 freight on the January 14 purchase. 20 She sells two deluxe mixers for $2,200 cash. 28 Natalie issues a check to her assistant. Her assistant worked 20 hours in January and is also paid for amounts owing at December 31, 2014. Recall that Natalie’s assistant earns $8 an hour. 28 Natalie collects amounts due from customers in the January 12 transaction. 31 She pays Kzinski all amounts due. 31 Cash dividends of $750 are paid.
Explanation / Answer
Date Accounts Title Dr Cr 4-Jan Inventory $2750 Accounts payable 2750 (Purchases on account) 6-Jan Freight 100 Cash 100 (Being freight paid) 7-Jan Accounts payable 570 Invetory (Purchase Return) 550 Freight 20 (Being purchase return) 8-Jan Cash Please enter amount as not mentioned Accounts Receivable 12-Jan Accounts receivable 3300 Sales 3300 (Sales on account) 13-Jan Accured Liabilities Please enter amount as not mentioned Cash (paid aacured bills) 14-Jan Freight Out 75 Cash 75 (being delivery charges paid) 14-Jan Purchases 2200 Accounts payable 2200 (Purchases on account) 17-Jan Cash 1000 Common stock 1000 18-Jan Freight 80 Cash 80 20-Jan Accounts receivable 2200 Sales 2200 (Sales on account) 28-Jan Salaries Expenses 160 Salaries Payable Cash (20*8) 160 Cash Please enter amount as not mentioned because the question is not having last year Trial balance 28-Jan Cash 3300 Accounts receivable 3300 30-Jan Accounts Payable (2200+2750-570) 4380 Cash 4380 31-Jan Retained earnings 750 Dividend Payable 750 Dividend payable 750 Cash 750 Partial Trial Balance as December 31 Trial balance is not mentiod Particular Dr Cr (please add this in December ending balance) Cash -415 Negative because opening cash balance missing Inventory 1650 3 pcs left Accounts receivable 2200 Common stock 1000 Retained earnings -750 Decrease from opening balance Sales 5500 Cost of Good sold (5*570) 2850 Freight Out 75 Salaries expenses 160
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