ACCOUNTING

Nov 8 Mrs L cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.

Nov 8 She opens a bank account under the name Cookies" and transfers $500 from her personal account to the new account.

Nov 11 Mrs L pays $65 for advertising.

Nov 13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash. (Hint: Use Supplies account.)

Nov 14 Mrs L starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top-of-the-line food processor and mixer that originally cost her $750. Mrs L decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business.

Nov 16 Mrs L realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Mrs L signs a note payable in the name of the business. Mrs L deposits the money in the business bank account. (Hint: The note does not have to be repaid for 24 months. As a result, the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.)

Nov 17 She buys more baking equipment for $900 cash.

Nov 20 She teaches her first class and collects $125 cash.

Nov 25 Mrs L books a second class for December 4 for $150. She receives $30 cash in advance as a down payment.

Nov 30 Mrs L pays $1,320 for a one-year insurance policy that will expire on December 1, 2020.

Prepare journal entries to record the November transactions. Below is format

General Journal

Date Account title & Explaination Debit Credit

Post the journal entries to general ledger accounts. Below is format

General Ledger

Acct Title

Date Explanation Ref Debits Credits Balance

Prepare a trial balance at November 30. Below is format

Trial Balance

Date Debit Credit