This is 4 part assignment; part1, part2 & part3 were answered by coursehero [they can be referred]. Part4 is due now. This is continuation assignment; thus posting solved part1, part2, part3 as well.

Part 1

Nov 8Mrs L cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.

Nov 8She opens a bank account under the name "Cookies" and transfers $500 from her personal account to the new account.

Nov 11 Mrs L pays $65 for advertising.

Nov 13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash. (Hint: Use Supplies account.)

Nov 14 Mrs L starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $750. Mrs L decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business.

Nov 16 Mrs L realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Mrs L signs a note payable in the name of the business. Mrs L deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months. As a result, the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.)

Nov 17 She buys more baking equipment for $900 cash.

Nov 20 She teaches her first class and collects $125 cash.

Nov 25 Mrs L books a second class for December 4 for $150. She receives $30 cash in advance as a down payment.

Nov 30 Mrs L pays $1,320 for a one-year insurance policy that will expire on December 1, 2020.

Note: Part 1 was answered by Leigh_p[tutor] on 11/Jan/2021

Part 2

There is a continuation. By end of November, Mrs L puts together the following additional information:

a.A count reveals that $35 of baking supplies were used during November.

b.Mrs L estimates that all of her baking equipment will have a useful life of 5 years or 60 months. (Assume Mrs L decides to record a full month's worth of depreciation, regardless of when the equipment was obtained by the business.)

c.Mrs L'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.)

d.On November 30, a friend of Mrs L asks her to teach a class at the neighborhood school. Mrs L agrees and teaches a group of 35 first-grade students how to make gingerbread cookies. The next day, Mrs L 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.

e.Mrs L receives a utilities bill for $45. The bill is for utilities consumed by Mrs L's "Cookies" business during November and is due December 15.

Using the trial balance provided, and based on the new information above, do the following:

COOKIES: Trial Balance: November 30, 2019

DebitCredit

Cash$245

Supplies125

Prepaid Insurance1,320

Equipment1,200

Unearned Service Revenue$30

Notes Payable2,000

Owner's Capital800

Service Revenue125

Advertising Expense65

$2,955$2,955

Note: Part 2 was answered by mialvaran [tutor] on 16/Jan/2021

Part 3

Mrs L had a very busy December.

At the end of the month, after journalizing and posting the December transactions and adjusting entries, Mrs L prepared the adjusted trial balance seen here.

Adjusted Trial BalanceDecember 31, 2019

DebitCredit

Cash$1,180

Accounts Receivable875

Supplies350

Prepaid Insurance1,210

Equipment1,200

Accumulated Depreciation-

Equipment$40

Accounts Payable75

Salaries and Wages Payable56

Interest Payable15

Unearned Service Revenue300

Notes Payable2,000

Owner's Capital800

Owner's Drawings500

Service Revenue4,515

Salaries and Wages Expense1,006

Utilities Expense125

Advertising Expense165

Supplies Expense1,025

Depreciation Expense40

Insurance Expense110

Interest Expense15

$7,801 $7,801

Note: Part 3 was answered by Hinz12 [tutor] on 28/Jan/2021

PART4

Mrs.L has had such a successful first few months, she is considering other opportunities to develop her business.

One opportunity is the sale of fine European mixers.

The owner of ASupply Co. has approached Mrs.L to become the exclusive distributor of these fine mixers in her state.

The current cost of a mixer is approximately $575, and Mrs.L would sell each one for $1,150.

Each appliance has a serial number and can be easily identified.

In the end, Mrs.L decides to use the perpetual inventory system. Included here are the transactions that happened during the month of January.

Jan.4Bought five deluxe mixers on account from ASupply Co. for $2,875, FOB shipping point, terms n/30.

Jan.6Paid $100 freight on the January 4 purchase.

Jan.7Returned one of the mixers to ASupply Co. because it was damaged during shipping. ASupply Co. issues Mrs.L Cookies credit for the cost of mixer plus $20 for the cost of freight that was paid on January 6 for one mixer.

Jan.8Collected $375 of the accounts receivable from December 2013.

Jan.12Three deluxe mixers are sold on account for $3,450, FOB destination, terms n/30. (Cost of goods sold is $595 per mixer.)

Jan.14Paid the $75 of delivery charges for the three mixers that were sold on January 12.

Jan.14Bought four deluxe mixers on account from ASupply Co. for $2,300, FOB shipping point, terms n/30.

Jan.17Mrs.L is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $1,000 cash in Mrs.L Cookies.

Jan.18Paid $80 freight on the January 14 purchase.

Jan.20Sold two deluxe mixers for $2,300 cash. (Cost of goods sold is $595 per mixer.)

Jan.28Mrs.L issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $56 owed at December 31, 2019. (Mrs.L assistant earns $8 an hour.)

Jan.28Collected the amounts due from customers for the January 12 transaction.

Jan.30Paid a $145 cellphone bill ($75 for the December 2019 account payable and $70 for the month of January). (Recall that the cellphone is used only for business purposes.)

Jan.31Paid ASupply Co. all amounts due.

Jan.31Mrs.L withdrew $750 cash for personal use.

As of January 31, the following adjusting entry data is available:

1.A count of baking supplies reveals that none were used in January.

2.Another month's worth of depreciation needs to be recorded on the $1,200 of baking equipment bought in November. (Recall that the baking equipment has a useful life of 5 years or 60 months and no salvage value.)

3.An additional month's worth of interest on her grandmother's $2,000 loan needs to be accrued. The interest rate is 6%.

4.During the month, $110 of insurance has expired.

5.An analysis of the unearned revenue account reveals that Mrs.L has not had time to teach any of these lessons this month because she has been so busy selling mixers. As a result, there is no change to the unearned revenue account. Mrs.L hopes to complete the remaining lessons in February.

6.An inventory count of mixers at the end of January reveals that Mrs.L has three mixers remaining.

a.Prepare & post the January 2020 transactions.

b.Prepare trial balance.

c.Prepare & post the adjusting journal entries required.

d.Prepare adjusted trial balance.

e.Prepare multiple-step income statement for the month ended January 31, 2020.

General Journal - template is as below:

General Journal

DateAccount Titles and ExplanationDebtCredit

General Ledger - template is as below:

General Ledger

Acct Title

DateExplanationRefDebitsCredits Balance

Trial Balance - template is as below:

Mrs.L Cookies

Trial Balance

Date

DebitCredit

Adjusted Trial Balance - template is as below:

Mrs.L Cookies

Adjusted Trial Balance

Date

DebitCredit

Income Statement - template is as below:

Mrs.L Cookies

Income Statement

For the Month Ended (fill in date)