On June 1, 2011, Natalie becomes both a shareholder and chief administrator of operations of Koebel's Family Bakery Ltd. After much discussion with her parents, Janet and Brian, Natalie decides not to accept the Biscuits retail chain's offer to supply oatmeal chocolate chip cookies. At this point, Natalie believes that it is best to focus on providing Coffee Beans, the national coffee shop, with all of its cupcake requirements. After becoming comfortable with Coffee Beans' contractual commitment and determining the extent of oven space available, Natalie and Koebel's Family Bakery can then reconsider the Biscuits offer.

Natalie obtains a copy of Koebel's Family Bakery Ltd.'s trial balance at June 30 to become familiar with the organization's accounting records

While a number of transactions have already been recorded and posted for the month of June, there are other transactions listed below that have not yet been recorded in the accounting records:
June 1 Natalie cashes in a Canada Savings Bond and receives $520, which she deposits into her personal bank account.
6 A one-year insurance policy is purchased for $12,400. This policy represents property insurance on the building and equipment. (The balance in the Prepaid Insurance account represents vehicle insurance on a delivery truck, recorded in the Vehicles account, purchased on January 1.)
8 Natalie attends to the receipt of advertising supplies. 5,000 brochures were purchased on account from Nakhooda Printing for $2,500.
15 Koebel's Family Bakery purchases baking equipment for $900 cash to accommodate the production of cupcakes.
18 Natalie books a cookie-making class for the evening of July 5. A $100 deposit is received in advance.
20 Natalie teaches a cookie-making class that was booked over the summer months. $300 is collected in cash.
21 The first order for the preparation of 200 dozen miniature cupcakes is received from Coffee Beans. Natalie supervises the preparation of these cupcakes. She ensures that there are adequate amounts of baking ingredients on hand and that the order is appropriately filled.
22 200 dozen cupcakes are delivered to the Coffee Beans warehouse in Calgary. An invoice of $1,920 for the preparation of these cupcakes is included.
27 A $100 invoice for use of Natalie's cell phone is received. The cell phone is used exclusively for Koebel's Family Bakery's business. The invoice is for services provided in June and is due on July 15.
29 Natalie receives her first paycheque from Koebel's Family Bakery, $3,000.
29 250 dozen cupcakes are delivered to the Coffee Beans warehouse in Calgary. An invoice of $2,400 for the preparation of these cupcakes is included.
Instructions
(a) Using T accounts, enter the opening balances in the general ledger as at June 30.
(b) Journalize the above transactions.
(c) Post the journal entries to the general ledger.
(d) Prepare an updated trial balance at June 30.

Transcribed Image Text:

KOEBEL'S FAMILY BAKERY LTD. Trial Balance June 30, 2011 Credit depreciation-building $103,125 depreciation-equipment 22,500 673,443 Sales returns and allowances Advertising expense ense S946,196