(a) Prepare and post the adjusting journal entries. It is the end of November and Natalie has been in touch with her grandmother. Her grandmother asked Natalie how well things went in her first month of business. Natalie, too, would like to know if she has been profitable or not during November. Natalie realizes that in order to determine Cookie Creations' income, she must first make adjustments. Natalie puts together the following additional information. 1. A count reveals that $35 of baking supplies were used during November. 2. Natalie estimates that all of her baking equipment will have a useful life of 5 years or 60 months. (Assume Natalie decides to record a full month's worth of depreciation, regardless of when the equipment was obtained by the business.) 3. Natalie's grandmother has decided to charge interest of 6% on the note payable extended on November 16 . The loan plus interest is to be repaid in 24 months. (Assume that half a month of interest accrued during November.) 4. On November 30 , a friend of Natalie's asks her to teach a class at the neighborhood school. Natalie agrees and teaches a group of 35 first-grade students how to make gingerbread cookies. The next day, Natalie prepares an invoice for $300 and leaves it with the school principal. The principal says that he will pass the invoice along to the head office, and it will be paid sometime in December. 5. Natalie receives a utilities bill for $45. The bill is for utilities consumed by Natalie's business during November and is due December 15. Instructions Using the information provided, do the following. (a) Prepare and post the adjusting journal entries. Value 50 pts. (b) Prepare an adjusted trial balance. Value 23pts. (c ) Using the adjusted trial balance, calculate Cookie Creations' net income or net loss for the month of November. Prepare an income statement, the statement of owner's equity and the balance sheet. Value 40pts. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". Prepare an adjusted trial balance. (c) Using the adjusted trial balance, calculate Cookie Creations' net income or net loss for the month of November. Do not prepare an income statement. COOKIE CREATIONS Income Statement For the month ended, November 30,2016 Revenues Service revenue Value Expenses Advertising expense Utilities expense Supplies expense Depreciation expense Interest expense Net income \begin{tabular}{|l|} \hline Value \\ \hline Value \\ \hline Value \\ \hline Value \\ \hline Value \\ \hline \end{tabular} \begin{tabular}{rl|c|} \hline Value & Value \\ \hline & ? \\ \hline \hline \end{tabular} COOKIE CREATIONS Statement of Owner's Equity For the month ended, November 30, 2016 COOKIE CREATIONS Balance Sheet Date?? Accumulated Depreciation - Equipment \begin{tabular}{l|l|c|c|c|c|} \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline & & & & & \\ \hline Nov. 30 & Balance & & & 65 \\ \hline \end{tabular} (a) Prepare and post the adjusting journal entries. It is the end of November and Natalie has been in touch with her grandmother. Her grandmother asked Natalie how well things went in her first month of business. Natalie, too, would like to know if she has been profitable or not during November. Natalie realizes that in order to determine Cookie Creations' income, she must first make adjustments. Natalie puts together the following additional information. 1. A count reveals that $35 of baking supplies were used during November. 2. Natalie estimates that all of her baking equipment will have a useful life of 5 years or 60 months. (Assume Natalie decides to record a full month's worth of depreciation, regardless of when the equipment was obtained by the business.) 3. Natalie's grandmother has decided to charge interest of 6% on the note payable extended on November 16 . The loan plus interest is to be repaid in 24 months. (Assume that half a month of interest accrued during November.) 4. On November 30 , a friend of Natalie's asks her to teach a class at the neighborhood school. Natalie agrees and teaches a group of 35 first-grade students how to make gingerbread cookies. The next day, Natalie prepares an invoice for $300 and leaves it with the school principal. The principal says that he will pass the invoice along to the head office, and it will be paid sometime in December. 5. Natalie receives a utilities bill for $45. The bill is for utilities consumed by Natalie's business during November and is due December 15. Instructions Using the information provided, do the following. (a) Prepare and post the adjusting journal entries. Value 50 pts. (b) Prepare an adjusted trial balance. Value 23pts. (c ) Using the adjusted trial balance, calculate Cookie Creations' net income or net loss for the month of November. Prepare an income statement, the statement of owner's equity and the balance sheet. Value 40pts. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". Prepare an adjusted trial balance. (c) Using the adjusted trial balance, calculate Cookie Creations' net income or net loss for the month of November. Do not prepare an income statement. COOKIE CREATIONS Income Statement For the month ended, November 30,2016 Revenues Service revenue Value Expenses Advertising expense Utilities expense Supplies expense Depreciation expense Interest expense Net income \begin{tabular}{|l|} \hline Value \\ \hline Value \\ \hline Value \\ \hline Value \\ \hline Value \\ \hline \end{tabular} \begin{tabular}{rl|c|} \hline Value & Value \\ \hline & ? \\ \hline \hline \end{tabular} COOKIE CREATIONS Statement of Owner's Equity For the month ended, November 30, 2016 COOKIE CREATIONS Balance Sheet Date?? Accumulated Depreciation - Equipment \begin{tabular}{l|l|c|c|c|c|} \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline & & & & & \\ \hline Nov. 30 & Balance & & & 65 \\ \hline \end{tabular}