Cookie Creations 03 al-c (Part Level Submission) After researching the different forms of business organization, Natalie Koebel decides to operate "Cookie Creations as a proprietorship. She then starts the process of getting the business running. In November 2019, the following activities take place. Nov. 8 Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account. 8 She opens a bank account under the name "Cookie Creations" and transfers $500 from her personal account to the new account. 11 Natalie pays $65 for advertising. 13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash. (Hint: Use Supplies account.) 14 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 $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. 16 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. (Hint: 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.) 17 She buys more baking equipment for $900 cash. 20 She teaches her first class and collects $125 cash. 25 Natalie books a second dass for December 4 for $150. She receives $30 clan in advance as a down payment. 30 Natalie pays $1320 for a one-year insurance policy that will expire on December 1, 2019. Natalie puts together the following additional information. 1. A count reveals that $35 of baking supplies were used during November 2. Natalie estimates that all of her baking equipment will have a useful life of 5 years or 60 months. (Assume Natalie decides to record a full month's worth of depreciation, regardless of when the equipment was obtained by the business.) 3. Natalie's grandmother has decided to charge interest of 6% on the note payable extended on November 16. The loan plus interest is to be repaid in 24 months. (Assume that half a month of interest accrued during November.) 4. On November 30, a friend of Natalie's asks her to teach a dass at the neighborhood school, Natalie agrees and teaches a group of 35 first-grade students how to make gingerbread cookies. The next day, Natalie prepares an invoice for $300 and leaves it with the school principal. The principal says that he will pass the invoice along to the head office, and it will be paid sometime in December 5. Natalie receives a utilities bill for $45. The bill is for utilities consumed by Natalie's business during November and is due December 15. (a2) Post the adjusting journal entries. (Post entries in the order of journal entries presented in the previous question.) Cash Date Explanation Ref. Debit Credit Nov. 30 Balance Accounts Receivable Date Explanation Ref. Debit Credit Balance 245 Balance Nov. 30 12 Supplies Debit Credit Balance Date Explanation Ref. Nov. 30 Balance 125 30 J2 Balance 1,320 Prepaid Insurance Date Explanation Ref. Debit Credit Nov. 30 Balance Equipment Date Explanation Ref. Debit Credit Nov. 30 Balance Balance 1,200 Accumulated Depreciation Equipment Date Explanation Ref. Debit Credit Balance Nov. 30 Accounts Payable Debit Date Explanation Ref. Credit Balance Nov. 30 J2 Interest Payable Debit Date Explanation Ref. Credit Balance Nov. 30 12 Balance 30 Unearned Service Revenue Date Explanation Ref. Debit Credit Nov. 30 Balance Notes Payable Date Explanation Ref. Debit Credit Nov. 30 Balance Owner's Capital Date Explanation Ref. Debit Credit Nov. 30 Balance Balance 2,000 Balance 800 Service Revenue Debit Credit Date Explanation Ref. Nov. 30 Balance Balance 125 30 J2 Utilities Expense Debit Date Explanation Ref. Credit Balance Nov. 30 12 Advertising Expense Date Explanation Ref. Debit Credit Nov. 30 65 Supplies Expense Date Explanation Ref. Debit Credit Balance 65 Balance Nov. 30 J2 Depreciation Expense Date Explanation Ref. Debit Credit Balance Nov. 30 J2 Interest Expense Debit Date Explanation Ref. Credit Balance Nov. 30 12