Presented below is Natalie’s tentative adjusted trial balance from her worksheet dated January 31, 2023: COOKIE CREATIONS Adjusted Trial Balance December 31, 2023 Account Debit Credit Cash $2,696...

Presented below is Natalie’s tentative adjusted trial balance from her worksheet dated January 31, 2023:

COOKIE CREATIONS Adjusted Trial Balance December 31, 2023
Account	Debit	Credit
Cash	$2,696
Accounts Receivable	575
Inventory	2,053
Supplies	403
Prepaid Insurance	1,265
Equipment	1,380
Accumulated Depreciation—Equipment		$71
Accounts Payable		345
Notes Payable		2,300
Owner’s Capital		3,828
Owner’s Drawings	863
Sales Revenue		6,613
Cost of Goods Sold	3,421
Depreciation Expense	23
Insurance Expense	127
Salaries and Wages Expense	184
Utilities Expense	81
Freight-Out	86
	$13,157	$13,157

The adjusted trial balance above is tentative because Natalie had a transaction earlier in January that she was unsure how to record. The transaction took place on January 15, when a customer asked if she could purchase three gift cards, each good for one cookie class, to use as gifts for her daughters. Natalie was excited about this new idea and collected $519 from the customer in return for three gift cards. One of the gift cards was redeemed on January 25. The transaction has not yet been recorded and is not reflected in the tentative adjusted trial balance.

(a) & (b) Prepare the journal entry to record the receipt of cash for the three gift cards on January 15. Prepare the journal entry necessary because one card was redeemed.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 15	cash	519
	unearned Service revenue		519
Jan. 25	Unearned Service Revenue	173
	Service Revenue		173

Prepare a corrected adjusted trial balance that includes the effect of the entries from parts (a) and (b).

COOKIE CREATIONS Adjusted Trial Balance For the Quarter Ended January 31, 2023For the Year Ended January 31, 2023January 31, 2023
	Debit	Credit
	$	$



















	$	$

Jun 02, 2022

SOLUTION.PDF

Presented below is Natalie’s tentative adjusted trial balance from her worksheet dated January 31, 2023: COOKIE CREATIONS Adjusted Trial Balance December 31, 2023 Account Debit Credit Cash $2,696...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment