Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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. Natalie Koebel decides to operate "Cookie Creations as a proprietorship. She then starts the process of operating the business. In November 2022, the following activities take place Nov. 8 Natalie cashes her US Savings Bonds and receives $520, which she deposits in her personal bank account She opens a bank account under the name "Cookie Creations and transfers $500 from her personal account to the new 8 account 11 13 14 16 Natalie pays $65 for advertising She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash. (Hint: Use the Supplies account.) Natalie 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. Natalie decides to start using it only in her new business. She estimates that the food processor is currently worth $300. She invests the food processor in the business. Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. (Hint: The note will be repaid in 24 months. As a result, the note payable should be reported in the accounts and the balance sheet as the last liability) She buys more baking equipment for $900 cash. She teaches her first class and collects $125 cash Natalie withdraws $100 from the business for personal expenditures. Natalie pays $1.320 for a one-year insurance policy that will expire on December 1, 2023. 17 20 25 30 Assets Cash Supplies Prepaid Insurance Equipm Nov. 8 $ 520 S $ 11 13 14 16 17 20 25 30 Totals $ + $ $ + Liabilities Owne Equipment Notes Payable Owner's Capital Owner's Drawings $ $ $ 520 $ I $ A Owner's Equity Owner's Capital Owner's Drawings Revenues Expenses 520 $ $ + 16 $ $ Compute net income for the month. Net income $ e Textbook and Media Compute the total assets, total liabilities, and total owner's equity at November 30. Total assets $ Total liabilities $ Total owner's equity $ e Textbook and Media

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

Petroleum Accounting: Principles, Procedures; And Issues

Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou

8th Edition

0940966328, 978-0940966321

More Books

Students also viewed these Accounting questions

Question

How can Trip 7 prevent future supply chain uncertainties?

Answered: 1 week ago

Question

How can you listen critically to others public speeches?

Answered: 1 week ago