1. Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some
5. Natalie teaches the class that was booked on November 25. The balance outstanding is
8. Cookie Creations receives a check for the amount due from the neighborhood school for the
class given on November 30.
9. Cookie Creations receives $750 in advance from the local school board for five classes that
the company will give during December and January.
15 Pays the cell phone invoice outstanding at November 30.
16. Issues a check to Natalie's brother for the amount owed for the design of the website.
19. Receives a deposit of $60 on a cookie class scheduled for early January.
23. Additional revenue during the month for cookie-making classes amounts to $4,000. (Natalie
has not had time to account for each class individually.) $3,000 in cash has been collected and
$1,000 is still outstanding. (This is in addition to the December 5 and December 9 transactions.)
23. Additional baking supplies purchased during the month for sugar, flour, and chocolate chips
amount to $1,250 cash.
23. Issues a check to Natalie's assistant for $800. Her assistant worked approximately 100 hours
from the time in which she was hired until December 23.
28. Pays a dividend of $500 to the common shareholder (Natalie).
As of December 31, Cookie Creations' year-end, the following adjusting entry data are provided.
1. Cookie Creations received a utility bill for $20
2. Depreciation is recorded on the baking equipment purchased in November. The baking
equipment has a useful life of 5 years. Assume that 2 months' worth of depreciation is required.
3. Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website
account directly for the amount of the amortization.) The website is amortized over a useful life
of 2 years and was available for use on December 1.
4. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued during
November and December.) Round to the nearest dollar.
5. One month's worth of insurance has expired.
6. Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neighborhood
community center on December 31. In early January, Cookie Creations sends an invoice for
$450 to the community center.
7. A count reveals that $1,025 of baking supplies were used.
8. A cell phone invoice is received for $75. The invoice is for services provided during the
month of December and is due on January 15.