Because Natalie has been so successful with Cookie Creations and Curtis has been just as successful with his coffee shop, they both conclude that they could benefit from each others business expertise. Curtis and Natalie next evaluate the different types of business organization, and because of the advantage of limited personal liability, decide to form a new corporation. Curtis has operated his coffee shop for 2 years. He buys coffee, muffins, and cookies from a local supplier. Natalies business consists of giving cookie-making classes and selling fine European mixers. The plan is for Natalie to use the premises Curtis currently rents as a location for her cookie-making classes and demonstrations of the mixers that she sells. Natalie will also hire, train, and supervise staff hired to bake cookies and muffins sold in the coffee shop. By offering her classes on the premises, Natalie will save on travel, and the coffee shop will provide one central location for selling the mixers. Combining forces will also allow Natalie and Curtis to pool their resources and buy a few more assets to run their new business venture. The current market values of the assets of both businesses are as follows.

Description		Curtis Coffee		Cookie Creations
Cash		$7,500		$12,000
Accounts receivable		100		500
Inventory		450		1,130
Equipment		2,500		1,000
		$10,550		$14,630

Curtis and Natalie meet with a lawyer and form their corporation, called Cookie & Coffee Creations Inc., on November 1, 2021. The new corporation is authorized to issue 50,000 shares of $1 par common stock and 10,000 shares of no par, $6 cumulative preferred stock. The assets held by each business will be transferred into the corporation at current market value of $1 per share. Curtis will receive 10,550 common shares, and Natalie will receive 14,630 common shares in the corporation.

Prepare the journal entries required on November 1, 2021, the date when Natalie and Curtis transfer the assets of their respective businesses into Cookie & Coffee Creations Inc. (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.)

Date	Account Titles and Explanation	Debit	Credit
Nov. 1	enter an account title for the journal entry on November 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on November 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on November 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on November 1	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on November 1	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Assume that Cookie & Coffee Creations Inc. issues 1,000 $6 cumulative preferred shares to Curtis Dad and the same number to Natalies grandmother, in both cases for $5,000. Also assume that Cookie & Coffee Creations Inc. issues 750 common shares to its lawyer. Prepare the journal entries required for each of these transactions that also occurred on November 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Nov. 1	enter an account title to record the issue of stock	enter a debit amount	enter a credit amount
	enter an account title to record the issue of stock	enter a debit amount	enter a credit amount
	(To record issue of stock)
Nov. 1	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount