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This is a continuation of the Cookie Creations problem from Chapter 1.) CC2 After researching the different forms of business organization. Natalie Keeble decides to
This is a continuation of the Cookie Creations problem from Chapter 1.) CC2 After researching the different forms of business organization. Natalie Keeble decides to operate "Cookie Creations" as a proprietorship. She then starts the process of getting the business running. In November 2016, the following activities take place. Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account. She opens a bank account under the name "Cookie Creations" and transfers $500 from her personal account to the new account. Natalie pays $65 for advertising. She buys baking supplies, such as Hour, sugar, butter, and chocolate chips, for $125 cash. {Him: Use Supplies account.) Natalie starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent lop-of-the-line food processor and mixer that originally cost her $750. Natalie decides to start using it only in her new business. She estimates that the equipment is currently worth $300. She invests the equipment in the business. Natalie realizes that her initial cash investment is not enough. Her grandmother lends her $2,000 cash, for which Natalie signs a note payable in the name of the business. Natalie deposits the money in the business bank account. ([The note does not have to be repaid for 24 months. As a result, the note payable should be reported in the accounts as the last liability and also on the balance sheet as the last liability.) She buys more baking equipment for $900 cash. She teaches her first class and collects $125 cash. Natalie books a second class for December 4 for $ 150. She receives $30 cash in advance as a down payment. Natalie pays $1, 320 fora one-year insurance policy that will expire on December 1, 2017. Prepare journal entries to record the November transactions. Post the journal entries to general ledger accounts. Prepare a trial balance at November 30
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