Natalie and her friend Curtis Lesperance decide that they can benefit from joining Cookie Creations and Curtis's coffee shop. In the first part of this problem, they come to you with questions about setting up a corporation for their new business. Curtis has operated his coffee shop for 2 years. He buys coffee, muffins, and cookies from a local supplier. Natalie's business consists of giving cookie-making classes and selling fine European mixers. The plan is for Natalie to use the premises Curtis currently rents to give her cookie-making classes and demonstrations of the mixers that she sells. Natalie will also hire, train, and supervise staff to bake the cookies and muffins sold in the coffee shop. By offering her classes on the premises, Natalie will save on travel time going from one place to another. Another advantage is that the coffee shop will have one central location for selling the mixers. The current market values of the assets of both businesses are as follows.

		Curtiss Coffee		Cookie Creations
Cash		$7,500		$11,630
Accounts receivable		100		800
Inventory		450		1,200
Equipment		2,500		1,000	*

*Cookie Creations decided not to buy the delivery van considered in Chapter 9. Combining forces will also allow Natalie and Curtis to pool their resources and buy a few more assets to run their new business venture. Curtis and Natalie then meet with a lawyer and form a corporation on November 1, 2020, called Cookie & Coffee Creations Inc. The articles of incorporation state that there will be two classes of shares that the corporation is authorized to issue: common shares and preferred shares. They authorize 100,000 no-par shares of common stock, and 10,000 no-par shares of preferred stock with a $0.50 noncumulative dividend. The assets held by each of their businesses will be transferred into the corporation at current market value. Curtis will receive 10,550 common shares, and Natalie will receive 14,630 common shares in the corporation. Therefore, the shares have a fair value of $1 per share. Natalie and Curtis are very excited about this new business venture.

(d)

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Your answer is partially correct.

Prepare the opening balance sheet for Cookie & Coffee Creations Inc. as of November 1, 2020, including the journal entries in (b) and (c) above. (List current assets in order of liquidity. Enter the account name only and do not provide the descriptive information provided in the question.)

COOKIE & COFFEE CREATIONS INC. Balance Sheet choose the accounting period For the Month Ended November 1, 2020November 1, 2020For the Year Ended November 1, 2020
Assets
select an opening name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentRetained EarningsStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item					$enter a dollar amount
enter a balance sheet item					enter a dollar amount
enter a balance sheet item					enter a dollar amount
select a closing name for subsection one Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentRetained EarningsStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Property, Plant and EquipmentTotal Stockholders' Equity					enter a total amount for subsection one
select an opening name for subsection two Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentRetained EarningsStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item					enter a dollar amount
select a closing name for this part of the balance sheet Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentRetained EarningsStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Property, Plant and EquipmentTotal Stockholders' Equity					$[enter a total amount for this part of the balance sheet
Stockholders' Equity
select an opening subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentRetained EarningsStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Property, Plant and EquipmentTotal Stockholders' Equity
enter a balance sheet item					$enter a dollar amount
enter a balance sheet item					enter a dollar amount
select a closing subsection name Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentRetained EarningsStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Property, Plant and EquipmentTotal Stockholders' Equity					enter a total of the two previous amounts
enter a balance sheet item					enter a dollar amount
select a closing name for this part of the balance sheet Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesPaid-in CapitalProperty, Plant and EquipmentRetained EarningsStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Paid-in CapitalTotal Property, Plant and EquipmentTotal Stockholders' Equity					$enter a total amount for this part of the balance sheet

List of Accounts

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