Because Natalie has had such a successful first few months, she is considering other opportunities to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 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. B 12 She collects $450 due from the neighborhood community center that was accrued at the end of December 2023. 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, in the lanuary 14 nurchase C Question 3 of 4 < 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 5.46/25 Natalie issues a check to her assistant. Her assistant worked 20 hours in January and is also paid for the amount accrued at December 31, 2023. Recall that Natalie's assistant earns $8 an hour. 28 Natalie collects amounts due from customers from the January 12 transaction. 31 She pays Kzinski all amounts due. 31 Cash dividends of $750 are paid. The post-closing trial balance from December is presented below. COOKIE CREATIONS INC. Post-Closing Trial Balance December 31, 2023 Debit Credit Cash $1.340 Accounts Receivable) 1,450 Supplies 400 Prepaid Insurance 1,100 Debit Credit Cash $1,340 Accounts Receivable. 1,450 Supplies 400 Prepaid Insurance 1,100 Equipment 1,200. Accumulated Depreciation-Equipment Website $40 575 Accounts Payable Interest Payable Salaries and Wages Payable Unearned Service Revenue Notes Payable 75 23 56 360 2,000 Common Stock Retained Earnings 800 2,711 $6,065 $6,065 Prepare a trial balance. Omit accounts with O balances. COOKIE CREATIONS INC. Trial Balance Debit Credit Question 3 of 4 5.46/25 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 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. B 12 She collects $450 due from the neighborhood community center that was accrued at the end of December 2023. 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, in the lanuary 14 nurchase C Question 3 of 4 < 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 5.46/25 Natalie issues a check to her assistant. Her assistant worked 20 hours in January and is also paid for the amount accrued at December 31, 2023. Recall that Natalie's assistant earns $8 an hour. 28 Natalie collects amounts due from customers from the January 12 transaction. 31 She pays Kzinski all amounts due. 31 Cash dividends of $750 are paid. The post-closing trial balance from December is presented below. COOKIE CREATIONS INC. Post-Closing Trial Balance December 31, 2023 Debit Credit Cash $1.340 Accounts Receivable) 1,450 Supplies 400 Prepaid Insurance 1,100 Debit Credit Cash $1,340 Accounts Receivable. 1,450 Supplies 400 Prepaid Insurance 1,100 Equipment 1,200. Accumulated Depreciation-Equipment Website $40 575 Accounts Payable Interest Payable Salaries and Wages Payable Unearned Service Revenue Notes Payable 75 23 56 360 2,000 Common Stock Retained Earnings 800 2,711 $6,065 $6,065 Prepare a trial balance. Omit accounts with O balances. COOKIE CREATIONS INC. Trial Balance Debit Credit Question 3 of 4 5.46/25
Expert Answer:
Related Book For
Accounting Principles
ISBN: 978-1119048503
7th Canadian Edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date:
Students also viewed these accounting questions
-
People who earn a higher salary can afford more goods, including health care. However, according to Grossman, they will choose a higher desired health stock. Why is this so, according to the model?
-
Toms, Inc., produces various Mexican food products and sells them to Western Foods, a chain of grocery stores located in Texas and New Mexico. Toms, Inc., makes two salsa products: Western Foods...
-
The only DVD rental club available to you charges $4 per movie per day. If your demand curve for movie rentals is given by P = 20 - 2Q, where P is the rental price ($/day) and Q is the quantity...
-
Both trading and available-for-sale accounting methods are considered mark-to-market accounting for investments. Describe their similarities and differences. Which of the two methods do you think...
-
The Neal Company wants to estimate next years return on equity (ROE) under different leverage ratios. Neals total assets are $14 million, it currently uses only common equity, and its...
-
A situation in which individuals benefit from a publicly provided good or service without paying for it and actively supporting its acquisition, is referred to as: A situation in which individuals...
-
How do you define sustainability in health care? What opportunities exist in your organization for meaningful dialogue about sustainable practices? How important is "green" in the overall purchasing...
-
Discuss examples where hotels successfully met or exceeded premium guest room expectations while maintaining reasonable travel costs.
-
Thomas Manufacturing includes the following accounting records: Dec. 31, 2016 31-Dec-15 Work in Process Inventory $15,000 $12,000 Finished Goods Inventory $45,000 $51,000 Materials...
-
1. Two electrical bulbs marked 40 W, 220 V and 60 W, 220V when connected in series across same voltage supply of 220 V, the effective power is P and when connected in parallel, the effective power is...
-
What information does cost accounting provide? What decisions can be made regarding a manufacturing operation from the data?
-
Research on Allucent Company - refer to webiste https://allucent.io Answer the following questions 1. create materials or content 2. Review and test materials 3. Make necessary changes 4. Make and...
-
Technical analysis Vs Fundamental Analysis Which analysis is useful, technical analysis or fundamental analysis? None of them, one of them, or both of them? From my experience, I feel technical...
-
Is times interest earned meaningful for utilities? Why or why not?
-
An example of a proportional tax would be a. a state sales tax. b. a local property tax. c. a flat rate income tax. d. the current U.S. income tax.
-
What is rational ignorance?
-
The ability-to-pay principle states: a. Those with the greatest ability to pay taxes should pay more. b. Those with the least ability to pay taxes should pay more. c. Individuals receiving the...
Study smarter with the SolutionInn App