Prepare a post-closing trial balance

Question

Assignment:

Open your corrected CCC3 file. Complete the required activities for CCC4.

Note that this is a rather difficult problem. You are asked to prepare financial statements and prepare and post closing entries, but you were not given the specific transactions for December. Instead, you are given the Adjusted Trial Balance for Dec. 31. I recommend that you take the balances on the ATB and write them in the correct ledger accounts. Just make a note to yourself in each ledger that this is the "Dec. 31 balance." Of course, if we were REALLY doing a set of books, we would have posted the entries for Dec. and this wouldn't be necessary.

Natalie had a very busy December.At the end of the month,after journalizing and posting the December transactions and adjusting entries. Natalie prepared the following adjusted trial balance.

COOKIE CREATIONS
Adjusted Trial Balance
December 31, 2011

	Debit	Credit
Cash	$1,180
Accounts Receivable	875
Supplies	350
Prepaid Insurance	1,210
Equipment	1,200
Accumulated Depreciation - Equipment		$ 40
Accounts Payable		75
Salaries Payable		56
Interest Payable		15
Unearned Revenue		300
Notes Payable		2,000
Owner's Capital		800
Owner's Drawing	500
Service Revenue		4,515
Salaries and Wages Expense	1,006
Utilities Expense	125
Advertising Expense	165
Supplies Expense	1,025
Depreciation Expense	40
Insurance Expense	110
Interest Expense	15
	$7,801	$7,801

Instructions:

Using the information in the adjusted trial balance, do the following.

1. Prepare an income statement and a statement of owner%u2019s equity for the 2 months ended December 31, 2009, and a classified balance sheet as at December 31, 2009. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2011.

2. Natalie has decided that her year-end will be December 31, 2009. Prepare and post closing entries as of December 31, 2009.

3. Prepare a post-closing trial balance.