(Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 3.)
CCC4 Cookie Creations is gearing up for the winter holiday season. During the month of December 2011, the following transactions occur.
Continuing Cookie Chronicle 219
Dec. 1 5 8 9 15
23 23 28
Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some administrative duties.
Natalie teaches the class that was booked on November 25. The balance out- standing is received.
Cookie Creations receives a check for the amount due from the neighborhood school for the class given on November 30.
Cookie Creations receives $750 in advance from the local school board for five classes that the company will give during December
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(d) Prepare and post adjusting journal entries for the month of December.Prepare an adjusted trial balance as of December 31, 2011.
Prepare an income statement and a retained earnings statement for the 2-month pe- riod ending December 31, 2011, and a classified balance sheet as of December 31, 2011.$8,160 (c) $8,804 (e)$3,211 (f)
(g) Prepare and post closing entries as of December 31, 2011.$6,065 (h)Prepare a post-closing trial balance. | | broadening your perspective | | Financial Reporting and AnalysisFINANCIAL REPORTING PROBLEM: Tootsie Roll Industries, Inc.
BYP4-1 The financial statements of Tootsie Roll are presented in Appendix A at the end of this book.Instructions * (a) Using the consolidated income statement and balance sheet, identify items that may result in adjusting entries for deferrals. * (b) Using the consolidated income statement, identify two items that may result in adjusting en- tries for accruals. * (c) What was the amount of depreciation expense for 2009 and 2008? (You will need to exam- ine the notes to the financial statements or the statement of cash flows.) Where was accumu- lated depreciation reported? * (d) What was the cash paid for income taxes during 2009, reported at the bottom of the consol- idated statement of cash flows? What was income tax expense (provision for income taxes) for 2009? COMPARATIVE ANALYSIS PROBLEM: