In November 2023, after having incorporated Cookie Creations inc., Natalie begins operations. She has decided not to pursue the offer to supply cookies to Biscuits. Instead, she will focus on offering cooking classes. The following events occur. Nov. 8 Natalie cashes in her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account. 8 Natalie opens a bank account for Cookie Creations inc. 8 Cookie Creations sells common stock to Natalie for $500. 11 Cookie Creations purchases paper and other office supplies for $95. (Use Supplies.) 14 Cookie Creations pays $125 to purchase baking supplies, such as flour, sugar, butter, and chocolate chips. (Use Supplies.) 15 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 $550. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300, and she transfers the equipment into the business in exchange for additional common stock. (Treat this transaction as an $300 exchange of common stock for equipment.) 16 The company needs more cash to sustain its operations. Natalie's grandmother lends the company $2,000 cash, in exchange for a two-year. 9% note payable. Interest and the principal are repayable at maturity. 17 Cookie Creations pays $900 for additional baking equipment. 18 Natalie schedules her first class for November 29 . She will receive $100 on the date of the class. 25 Natalie books a second class for December 5 for $150. She receives a $60 cash down payment, in advance. 29 Natalie teaches her first class, booked on November 18 , and collects the $100 cash. 30 Natalie's brother develops a website for Cookie Creations inc. that the company will use for advertising. He charges the company $600 for his work, payable at the end of December. (Because the website is expected to have a useful life of two years before upgrades are needed, it should be treated as an asset called Website.) 30 Cookie Creations pays $1,200 for a one-year insurance policy. 30 Natalie teaches a group of elementary school students how to make Santa Claus cookies. At the end of the ciass. Natalie leaves an invoice for $300 with the school principal. The principal says that he will pass it along to the business office and it will be paid some time in December. 30 Natalie receives a $50 invoice for use of her cell phone. She uses the cell phone exclusively for Cookie Creations inc. business. The invoice is for services provided in November, and payment is due on December 15. Prepare journal entries to record the November transactions. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Question 1 of 1 (Natalle opens a bank account) 16.97/25 (Issued stock for cash) 4) Three Acts of ia decs Question 1 of 1 16.97/25 Notes Pivable Equ prient. Cashi NoEntry 9. These Actiof a doct NoEntry Unearned Service Revenue (To record purchase of website on account) Prepaid Insurance Question 1 of 1 16.97/25 (To record payment of insurance) (Billed client for service rendered) Uvilities Expense Accounts Payable (To record receipt of telephone bili) eTextbook and Media Post the journal entries to the general ledger accounts and determine month-end balances. (Post entries in the order of Journal entries presented in the previous part.) Question 1 of 1 16.97/25 Question 1 of 1 Prepaid Insurance Website Nov. 30 600 Question 1 of 1 16.97/25: Website Question 1 of 1 16.97/25 Question 1 of 1 16.97/25: Utilities Expense Question 1 of 1 16.97/25 Utilities Expense eTextbook and Media List of Accounts Question Part Score Attempts: unlimited 6 Your answer is partially correct. Prepare a trial balance at November 30,2023 . Question 1 of 1 16.97/25 Question 1 of 1 16.97/25
