CCC3

CONTINUINGCOOKIECHRONICLE

(a)
Date

GENERALJOURNAL
AccountTitlesand Explanation

J2
Debit

Nov. 30 SuppliesExpense....................................................
Supplies............................................................

35

30 DepreciationExpense..............................................
AccumulatedDepreciationEquipment
[($300+ $900) 60 months].............................

20

30 InterestExpense.....................................................
InterestPayable
($2,000X .06 X 1/12 X .5)...................................

30 AccountsReceivable...............................................
ServiceRevenue.................................................

300

30 UtilitiesExpense.....................................................
AccountsPayable...............................................

45

Credit

35

20

300

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions

45

3-1

CCC3(Continued)
(a) (Continued)

Date

Explanation

Nov. 30 Balance

Date

Explanation

Nov. 30

Date

Explanation

Explanation

Nov. 30 Balance

Date

Explanation

Nov. 30 Balance

Date
Nov. 30

Debit

Credit

Balance

245

AccountsReceivable
Ref.
Debit
J2

Nov. 30 Balance
30

Date

Cash
Ref.

Credit

Balance

300

Supplies
Ref.
Debit

J2

PrepaidInsurance
Ref.
Debit

300

Credit

Balance
125
90

35

Credit

Balance

Equipment
Ref.
Debit

1,320

Credit

Balance

1,200

AccumulatedDepreciationEquipment
Explanation
Ref.
Debit
Credit

Balance

20

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions

20

3-2

CCC3(Continued)
(a) (Continued)

Date

Explanation

Nov. 30

Date

J2

Explanation

Nov. 30

Date

Explanation

Explanation

Nov. 30 Balance

Date

Explanation

Nov. 30 Balance

Date

InterestPayable
Ref.
Debit
J2

Nov. 30 Balance

Date

AccountsPayable
Ref.
Debit

Explanation

Nov. 30 Balance
30

UnearnedServiceRevenue
Ref.
Debit

Credit

Balance

45

45

Credit

Balance

Credit

Balance

NotesPayable
Ref.
Debit

30

Credit

Balance

OwnersCapital
Ref.
Debit

2,000

Credit

Balance

ServiceRevenue
Ref.
Debit

J2

800

Credit

Balance

300

125
425

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions

3-3

CCC3(Continued)
(a) (Continued)

Date

Explanation

Nov. 30

Date

J2

Explanation

Nov. 30

Date

Explanation

Explanation

Nov. 30

Date
Nov. 30

Explanation

Credit

Balance
65

Credit

Balance
35

Credit

Balance

20

InterestExpense
Ref.
Debit
J2

45

35

DepreciationExpense
Ref.
Debit
J2

Balance

65

SuppliesExpense
Ref.
Debit
J2

Credit

45

AdvertisingExpense
Ref.
Debit
J2

Nov. 30

Date

UtilitiesExpense
Ref.
Debit

20

Credit

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions

Balance
5

3-4

CCC3(Continued)
(b)
COOKIECREATIONS
AdjustedTrial Balance
November30, 2011
Account
Cash...................................................................................
AccountsReceivable............................................................
Supplies..............................................................................
PrepaidInsurance................................................................
Equipment...........................................................................
AccumulatedDepreciationEquipment..................................
AccountsPayable.................................................................
InterestPayable...................................................................
UnearnedServiceRevenue....................................................
NotesPayable......................................................................
OwnersCapital....................................................................
ServiceRevenue..................................................................
UtilitiesExpense..................................................................
AdvertisingExpense.............................................................
SuppliesExpense.................................................................
DepreciationExpense...........................................................
InterestExpense..................................................................
Totals....................................................................

Debit
$ 245
300
90
1,320
1,200

Credit

20
45
5
30
2,000
800
425

45
65
35
20
5
$3,325

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions

$3,325

3-5

CCC3(Continued)
(c)
COOKIECREATIONS
IncomeStatement
For the MonthEndedNovember30, 2011
Revenues
Servicerevenue....................................................................
Expenses
Advertisingexpense.............................................................
Utilitiesexpense...................................................................
Suppliesexpense.................................................................
Depreciationexpense............................................................
Interestexpense...................................................................
Net income.................................................................................

$425
$65
45
35
20
5

170
$255

Yes, CookieCreationshasbeenprofitablein November.It has a profit of $255whichis more

thanonehalf of the revenueearnedin November.
[Note:OwnersEquityStatementis not requiredshownfor informationpurposesonly.]
COOKIECREATIONS
OwnersEquityStatement
For the MonthEndedNovember30, 2011
OwnersCapital, November1, 2011................................................
Add: Investment.........................................................................
Net income.......................................................................
OwnersCapital, November30, 2011..............................................

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions

0
800
255
$1,055

3-6

CCC3(Continued)
(c) (Continued)
[Note:BalanceSheetis not requiredshownfor informationpurposesonly.]

COOKIECREATIONS
BalanceSheet
November30, 2011
Assets
Cash.....................................................................................
Accountsreceivable...............................................................
Supplies................................................................................
Prepaidinsurance..................................................................
Equipment.............................................................................
Less: Accumulateddepreciationequipment...........................
Total assets......................................................................

$ 245
300
90
1,320
$1,200
20

1,180
$3,135

LiabilitiesandOwnersEquity
Liabilities
Notespayable...................................................................
Accountspayable..............................................................
Unearnedservicerevenue..................................................
Interestpayable.................................................................
Total liabilities..............................................................
Ownersequity
Ownerscapital.................................................................
Total liabilitiesand ownersequity..................................

Copyright 2011 John Wiley & Sons, Inc.Weygandt, Accounting Principles, 10/e, Continuing Cookie Chronicle Solutions

$2,000
45
30
5
2,080
1,055
$3,135

3-7