Cookie Creations 3 Ailer researching the dirretHIL forms ar busurless urganization, Nalali el deudes la aper "axakie Gealiuris" as a proprielarship. She then starts thie Process ur gelling th business running. In ber 2016, th rollawiny dctivities take place. Now, 8 Natale cashcs her U,S, Savlngs Bonds and nooolves $520, which she doposits In her personal bank account 8 She opens a nk ount under the name "Cookie Creations and transfers 00 from her person account to the new count 11 Natalie pa $65 for advertising 13 St buys baking sup ulale diipe, $12S Suppl king equpment to tak with her when tran: hin lie starts to gather some an excellent top-of-the-linefand prnorsspr that y rnst her $750. Natalie des to start ng it only in estimates that the equlpment 5 cumently worth $300. She Invests the caulpment In the business 16 Natale realizes that her Initial cash Investment s not enough. Her grandmother lends her s2.000 cash tor which Natalie signs a note payable in the name ot the business. Natalle deposits the money In the business bank account. (Mnt: The note does not have to be re paid for 24 months. As he note payable should be reported the accounts as the liability and so on the belance sheet as the last 17 St buys baking equipr $900 cash 20 She teach r enllerts 25 Natallc books a second class for Doccmbcr 4 for $150, 5he recolves $30 cash In advance as a down payment 30 Natale pays 20 tor a one-year Insul noe policy that wi expline on December 1, 2017 u is the end of November and Natalie has been in Louch with her grandmother. grandinather asked Natalie haw well things went in ther risL th of business. Nalalie, Lou, would like know ir she has been profitable or noL during November. Nalalie reali es unat in der to deter ake adustments. Natale puts together the followlng additlonal In omatlon 1. A coun eveals th 35 or baking supplies ere used d ng No reord a full th's rth of depre ation, regardess of when the equipment was pleaned by the business. mates that all af her haking enulprnent vul derides Natalla's grandmother has dodded to change Interest of 6% on the note payable extended on 6. The loan pl to be repald 24 months c that half a month of Interest aoaucd durtng Novembcen, s Intenrst 4. on November 30, a nd of Natalla's asks her to teach a class hool. Natale agreas and teaches a group of 35 first-grade students how to make olngantread cookles. The next day, Natalle prepares a Involce for S300 and leaves It with the at the nelghborhood school prin pal. The principl is th at he the invoice a ong to the head office, and be paid sometime in December Natalie receives util es bil or $4 The s for utiliti es consumed by Natalie s business during November and is due Decembe
