Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

After researching the different forms of business organization. Crane Koebel decides to operate Cookie Creations as a proprietorship. She then starts the process of getting

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
After researching the different forms of business organization. Crane Koebel decides to operate "Cookie Creations" as a proprietorship. She then starts the process of getting the business running. In November 2021, the following activities take place. Nov. 8 Crane cashes her U.S. Savings Bonds and receives $640, which she deposits in her personal bank account. 8 She opens a bank account under the name "Cookie Creations" and transfers $620 from her personal account to the new account. 11 Crane pays $80 for advertising. 13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $155 cash. (Hint: Use Supplies account.) 14 Crane 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 $930. Crane decides to start using it only in her new business. She estimates that the equipment is currently worth $370. She invests the equipment in the business. 16 Crane realizes that her initial cash investment is not enough. Her grandmother lends her $2,500 cash, for which Crane signs a note payable in the name of the business. Crane 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.) 17 She buys more baking equipment for $1,120 cash. - 20 She teaches her first class and collects $155 cash. 25 Crane books a second class for December 4 for $190. She receives $40 cash in advance as a down payment. 30 Crane pays $1,640 for a one-year insurance policy that will expire on December 1, 2022. Prepare journal entries to record the November transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order displayed in the problem.) Post the journal entries to general ledger accounts. (Post entries in the order of journal entries presented in the previous part.) Equipment Date Explanation Ref Debit Credit Bala J1 J1 Unearned Service Revenue Notes Payable Owner's Capital Service Revenue \begin{tabular}{|lll} Date & Explanation Ref & Debit \\ \hline 0 & J1 \\ \hline \end{tabular} Advertising Expense \begin{tabular}{|c|c|c|c|} \hline Date & Explanation Ref & Debit & Credit \\ \hline 0 & Jl & & \\ \hline \end{tabular} COOKIE CREATIONS Trial Balance November 30,2021 Debit $ Credit Payable tising Expense d Insurance ned Service Revenue r's Capital e Revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost-Benefit Analysis

Authors: E.J. Mishan, Euston Quah

6th Edition

1138492752, 978-1138492752

More Books

Students also viewed these Accounting questions