(e) Wenty Should BROA Collabor Instructor BYPI In would requi (b) Write a memo explaining (1) the sequence for preparing the financial statements, and relationships between the income statement, statement of owner's equity, and balan TAKING IT FURTHER Why isn't the balance sheet dated the same way as the income Expenses Salaries expense $32,000 Other expenses Supplies expense 1,500 Total expenses Profit LEE COMPANY Statement of Owner's Equity Year Ended February 28, 2014 M. Lee, capital, March 1, 2013 Add: Investments Profit Less: M. Lee, drawings M. Lee, capital, February 28, 2014 Instructions (a) the missing (i statement of owner's equity: "Year Ended February 28, 2014"? Comme BYPI-2 ter er CONTINUING COOKIE CHRONICLE Natalie Koebel spent much of her childhood learning the art of cookie-making from herges Role They passed many happy hours mastering every type of cookie imaginable and later creating to (H that were both healthy and delicious. Now at the start of her second year in college, Natalie is base ing various possibilities for starting her own business as part of the requirements of the Entre ship program she is taking. A long-time friend insists that Natalie has to somehow include con her business plan and, after a series of brainstorming sessions, Natalie settles on the idea of ope I cookie-making school. She will start on a part-time basis and offer her services in peoples' home that she has started thinking about it, the possibilities seem endless. During the fall, she will com th of to arn in Broadening Your Perspective on Christmas cookies. She will offer group sessions (which will probably be more entertainment than education for the participants) and individual lessons. Natalie also decides to include children in her target market. The first difficult decision is coming up with the perfect name for her business. In the end, she settles on "Cookie Creations" and then moves on to more important issues. Instructions (a) What form of business organization-proprietorship, partnership, or corporation-do you recom- mend that Natalie use for her business? Discuss the benefits and weaknesses of each form and give the reasons for your choice. (b) What types of information will Natalie need? Why will she require this information? How often will she need this information? (c) In addition to Natalie, who do you anticipate to be the users of Natalie's accounting information? What information will these identified users need and why? (d) Which set of accounting standards will Natalie likely adopt when compiling her accounting infor- mation? Why? (e) Identify specific asset, liability, and equity accounts that Cookie Creations will likely use to record its business transactions. (1) Should Natalie open a separate bank account for the business? Why or why not? BROADENING YOUR PERSPECTIVE Collaborative Learning Activity Note to instructor: Additional instructions and material for this group activity can be found on th Instructor Resource Site and in WileyPLUS. BYPI-1 In this group activity, students will be asked to identify (or determine) the information th would require if they were making a decision whether or not to lend money or to invest in a company. (e) Wenty Should BROA Collabor Instructor BYPI In would requi (b) Write a memo explaining (1) the sequence for preparing the financial statements, and relationships between the income statement, statement of owner's equity, and balan TAKING IT FURTHER Why isn't the balance sheet dated the same way as the income Expenses Salaries expense $32,000 Other expenses Supplies expense 1,500 Total expenses Profit LEE COMPANY Statement of Owner's Equity Year Ended February 28, 2014 M. Lee, capital, March 1, 2013 Add: Investments Profit Less: M. Lee, drawings M. Lee, capital, February 28, 2014 Instructions (a) the missing (i statement of owner's equity: "Year Ended February 28, 2014"? Comme BYPI-2 ter er CONTINUING COOKIE CHRONICLE Natalie Koebel spent much of her childhood learning the art of cookie-making from herges Role They passed many happy hours mastering every type of cookie imaginable and later creating to (H that were both healthy and delicious. Now at the start of her second year in college, Natalie is base ing various possibilities for starting her own business as part of the requirements of the Entre ship program she is taking. A long-time friend insists that Natalie has to somehow include con her business plan and, after a series of brainstorming sessions, Natalie settles on the idea of ope I cookie-making school. She will start on a part-time basis and offer her services in peoples' home that she has started thinking about it, the possibilities seem endless. During the fall, she will com th of to arn in Broadening Your Perspective on Christmas cookies. She will offer group sessions (which will probably be more entertainment than education for the participants) and individual lessons. Natalie also decides to include children in her target market. The first difficult decision is coming up with the perfect name for her business. In the end, she settles on "Cookie Creations" and then moves on to more important issues. Instructions (a) What form of business organization-proprietorship, partnership, or corporation-do you recom- mend that Natalie use for her business? Discuss the benefits and weaknesses of each form and give the reasons for your choice. (b) What types of information will Natalie need? Why will she require this information? How often will she need this information? (c) In addition to Natalie, who do you anticipate to be the users of Natalie's accounting information? What information will these identified users need and why? (d) Which set of accounting standards will Natalie likely adopt when compiling her accounting infor- mation? Why? (e) Identify specific asset, liability, and equity accounts that Cookie Creations will likely use to record its business transactions. (1) Should Natalie open a separate bank account for the business? Why or why not? BROADENING YOUR PERSPECTIVE Collaborative Learning Activity Note to instructor: Additional instructions and material for this group activity can be found on th Instructor Resource Site and in WileyPLUS. BYPI-1 In this group activity, students will be asked to identify (or determine) the information th would require if they were making a decision whether or not to lend money or to invest in a company