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Continuing Cookie Chronicle 5
I am having a hard time getting the trial balance to balance for this problem. It is 53 dollars off and I am not sure why. I have spent hours trying to figure this out.I am not sure if I have the journal entries correct for January 28th and 30th. I think this has something to do with it, but I am not sure. Any help would be appreciated. I have attached my xls.
Continuing Cookie Chronicle
Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers.
The owner of Kzinski Supply Co. has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $525, and Natalie would sell each one for $1050.
The following transactions happen during the month of January.
Jan 4 Bought five deluxe mixers on account from Kzinski Supply Co. for
$2625, FOB Shipping point, terms n/30.
6 Paid $100 freight on the January 4 purchase.
7 Returned one of the mixers to Kzinski because it was damaged
during shipping. Kzinski issues Cookie Creations credit for
the cost of mixer, plus $20 for the cost of freight that was
paid on Jan. 6 for one mixer.
8 Collected $375 of the accounts receivable from December 2007.
12 Three deluxe mixers are sold on account for $3150, FOB
destination, terms n/30.
14 Paid $75 of delivery charges for the three mixers that were sold
on January 12.
17 Natalie is concerned that there is not enough cash available
to pay for all of the mixers purchased. She invests an additional
$1000 cash in Cookie Creations.
18 Paid $80 freight on the January 14 purchase.
20 Sold two deluxe mixers for $2100 cash.
28 Natalie issued a check to her assistant for all the help the
assistant has given her during the month. Her assistant worked
20 hours in January and is also paid the $56 owed at December 31,
2007. (Recall that Natailie\'s assistant earns $8 an hour.)
28 Collected the amounts due from customers for the January 12
transaction.
30 Paid a $145 cellphone bill ($75 for the December 2007 account
payable and $70 for the month of January). (Recall that the
cellphone is used only for business purposes).
31 Paid Kzinsky all amounts due.
31 Natalie withdrew $750 cash for personal use.
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