Question 1 View Policies Current Attempt in Progress In November 2020, 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 US Savings Bonds and receives $520, which she deposits in her personal bank account 8 Natalie opens a bank account for Cookie Creations Inc. 8 Natalie purchases $500 of Cookie Creations common stock 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 Soles) 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 process and 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 comment into the business theory exchange for additional common stock 16 The company needs more cash to sustain its operations, Natalie's grandmother ends the company $2.000 cash in change for two year. Xote n terest 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 5600 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 class, 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. Date Account Titles and Explanation Debit Credit (Natalie deposits the cash on her personal bank account) (Natalie opens a bank account) (Issued stock for cash) Nov. 16 V Nov. 17 Nov. 18 Nov. 25 Nov. 29 Nov. 30 (To record purchase of website on account) Nov. 30 Nov. 30 (To record purchase of website on account) Nov. 30 (To record payment of insurance) Nov. 30 (Billed client for service rendered) Nov. 30 (To record payment of utilities on account) Cash Accounts Receivable Supplies Prepaid Insurance Equipment Website Accounts Payable Unearned Service Revenue Notes Payable Common Stock Service Revenue Service Revenue Utilities Expense e Textbook and Media COOKIE CREATIONS INC. Trial Balance Debit Credit
