CCC3

CONTINUING COOKIE CHRONICLE

(a)
Date

GENERAL JOURNAL
Account Titles and Explanation

Debit

Nov. 30 Advertising Supplies Expense.........................

Advertising Supplies .....................................
($165 $60)

105

30 Baking Supplies Expense..................................

Baking Supplies ..............................................

35

30 Depreciation Expense.........................................
Accumulated DepreciationBaking
Equipment....................................................
[($300 + $900) 60 months]

20

30 Interest Expense...................................................
Interest Payable...............................................
($2,000 X .06 X 1/12 X .5)

30 Accounts Receivable ..........................................

Teaching Revenue ..........................................

300

30 Telephone Expense .............................................

Accounts Payable...........................................

45

Copyright 2009 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 9/e, Continuing Cookie Chronicles

J2
Credit

105

35

20

300

45

(For Instructor Use Only)

3-1

CCC3 (Continued)
(a) (Continued)

Date

Explanation

Nov. 30 Balance

Date

Explanation

Nov. 30

Date

Explanation

Explanation

Nov. 30 Balance
30

Date

Explanation

Nov. 30 Balance

Copyright 2009 John Wiley & Sons, Inc.

Debit

Credit

Balance
145

Accounts Receivable
Ref.
Debit
J2

Nov. 30 Balance
30

Date

Cash
Ref.

Credit

300

Advertising Supplies
Ref.
Debit


J2

Baking Supplies
Ref.
Debit

300

Credit

Balance

105

165
60

Credit

Balance

35

125
90

Credit

Balance

J2

Prepaid Insurance
Ref.
Debit

Balance

Weygandt, Accounting Principles, 9/e, Continuing Cookie Chronicles

1,320

(For Instructor Use Only)

3-2

CCC3 (Continued)
(a) (Continued)

Date

Explanation

Nov. 30 Balance

Date

Explanation

Accounts Payable
Ref.
Debit

Explanation

Nov. 30

Copyright 2009 John Wiley & Sons, Inc.

Balance

20

20

Credit

Balance

45

45

Credit

Balance

J2

Interest Payable
Ref.
Debit

Balance
1,200

J2

Nov. 30

Date

Credit

Accumulated DepreciationBaking Equipment

Explanation
Ref.
Debit
Credit

Nov. 30

Date

Baking Equipment
Ref.
Debit

J2

Weygandt, Accounting Principles, 9/e, Continuing Cookie Chronicles

(For Instructor Use Only)

3-3

CCC3 (Continued)
(a) (Continued)

Date

Explanation

Nov. 30 Balance

Date

Explanation

Nov. 30 Balance

Date

Explanation

Nov. 30 Balance

Date

Explanation

Nov. 30 Balance
30

Date

Explanation

Nov. 30

Copyright 2009 John Wiley & Sons, Inc.

Unearned Revenue
Ref.
Debit

Credit

30

Notes Payable
Ref.
Debit

Credit

Balance
2,000

N. Koebel, Capital
Ref.
Debit

Credit

Balance
800

Teaching Revenue
Ref.
Debit


J2

Telephone Expense
Ref.
Debit
J2

Balance

Credit

Balance

300

125
425

Credit

Balance

45

Weygandt, Accounting Principles, 9/e, Continuing Cookie Chronicles

45

(For Instructor Use Only)

3-4

CCC3 (Continued)
(a) (Continued)

Date

Advertising Supplies Expense

Explanation
Ref.
Debit

Nov. 30

Date

J2

Explanation

Nov. 30

Date

Explanation

Nov. 30

Date
Nov. 30

Copyright 2009 John Wiley & Sons, Inc.

J2

Credit

Balance
35

Credit

20

Interest Expense
Ref.
Debit

Balance
105

35

Depreciation Expense
Ref.
Debit
J2

Explanation

105

Baking Supplies Expense

Ref.
Debit
J2

Credit

Balance
20

Credit

Balance

Weygandt, Accounting Principles, 9/e, Continuing Cookie Chronicles

(For Instructor Use Only)

3-5

CCC3 (Continued)
(b)
COOKIE CREATIONS
Adjusted Trial Balance
November 30, 2009
Account
Cash .............................................................................................
Accounts Receivable..............................................................
Advertising Supplies ..............................................................
Baking Supplies .......................................................................
Prepaid Insurance....................................................................
Baking Equipment ...................................................................
Accumulated DepreciationBaking Equipment...........
Accounts Payable....................................................................
Interest Payable........................................................................
Unearned Revenue ..................................................................
Notes Payable ...........................................................................
N. Koebel, Capital ....................................................................
Teaching Revenue...................................................................
Telephone Expense.................................................................
Advertising Supplies Expense ............................................
Baking Supplies Expense .....................................................
Depreciation Expense ............................................................
Interest Expense ......................................................................
Totals ...........................................................................

Copyright 2009 John Wiley & Sons, Inc.

Debit
$ 145
300
60
90
1,320
1,200

Credit

20
45
5
30
2,000
800
425

45
105
35
20
5
$3,325

Weygandt, Accounting Principles, 9/e, Continuing Cookie Chronicles

$3,325

(For Instructor Use Only)

3-6

CCC3 (Continued)
(c)
COOKIE CREATIONS
Income Statement
Month Ended November 30, 2009
Revenues
Teaching revenue.....................................................................
Expenses
Advertising supplies expense .............................................
Telephone expense .................................................................
Baking supplies expense ......................................................
Depreciation expense .............................................................
Interest expense .......................................................................
Net income .........................................................................................

$425
$105
45
35
20
5

210
$215

Yes, Cookie Creations has been profitable in November. It has a profit of

$215 which is almost equal to one half of the revenue earned in November.
[Note: Statement of Owners Equity is not requiredshown for information
purposes only.]
COOKIE CREATIONS
Statement of Owners Equity
Month Ended November 30, 2009
N. Koebel, Capital, November 1, 2009 .......................................
Add: Investment ..............................................................................
Net income..............................................................................
N. Koebel, Capital, November 30, 2009.....................................

Copyright 2009 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 9/e, Continuing Cookie Chronicles

0
800
215
$1,015

(For Instructor Use Only)

3-7

CCC3 (Continued)
(c) (Continued)
[Note: Balance Sheet is not requiredshown for information purposes
only.]

COOKIE CREATIONS
Balance Sheet
November 30, 2009
Assets
Cash...............................................................................................
Accounts receivable ................................................................
Advertising supplies ................................................................
Baking supplies .........................................................................
Prepaid insurance.....................................................................
Baking equipment.....................................................................
Less: Accumulated depreciation........................................
Total assets ...........................................................................

$ 145
300
60
90
1,320
$1,200
20

1,180
$3,095

Liabilities and Owners Equity

Liabilities
Notes payable .......................................................................
Accounts payable ................................................................
Interest payable....................................................................
Unearned revenue ...............................................................
Total liabilities .................................................................
Owners equity
N. Koebel, Capital ................................................................
Total liabilities and owners equity...........................

Copyright 2009 John Wiley & Sons, Inc.

Weygandt, Accounting Principles, 9/e, Continuing Cookie Chronicles

$2,000
45
5
30
2,075
1,015
$3,095

(For Instructor Use Only)

3-8