It is the end of November and Natalie has been in touch with her grandmother. Her grandmother asked Natalie how well things went in her ?rst month of business. Natalie, too, would like to know if she has been pro?table or not during November. Natalie realizes that in order to determine Cookie Creations' income, she must ?rst make adjustments. Natalie puts together the following additional information. 1. A count reveals that $35 of baking supplies were used during November. 2. Natalie estimates that all of her baking equipment will have a useful life of 5 years or 60 months. 3. Natalie's grandmother has decided to charge interest of 6% on the note payable extended on November 16. The loan plus interest is to be repaid in 24 months.
4. On November 30, a friend of Natalie's asks her to teach a class at the neighborhood school. Natalie agrees and teaches a group of 35 ?rst-grade students how to make Santa Claus cookies. The next day, Natalie prepares an invoice for $300 and leaves it with the school principal. The principal says that he will pass the invoice along to the head office, and it will be paid sometime in December. 5. Natalie receives a utilities bill for $45. The bill is for utilities consumed by Natalie's business during November and is due December 15. Instructions Using the information that you have gathered through Chapter 2, and based on the new information above, do the following. (a) Prepare and post the adjusting journal entries. (b) Prepare an adjusting trial balance. (c) c, calculate Cookie Creations' net income or net loss for the month of November. Do not prepare an income statement.