Reference no: EM132823958
Question - After researching the different forms of business organization, Natalie decides to operate Cookie Creations as a proprietorship. She then starts the process of getting the business running. In November 2019, the following activities listed below take place.
Nov. 8: Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account.
Nov. 8: She opens a bank account under the name "Cookie Creations" and transfers $500 from her personal account to the new account.
Nov. 11: Natalie pays $65 for advertising.
Nov. 13: She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash. (Hint: Use the Supplies account.)
Nov. 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.
Nov. 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 on the balance sheet as the last liability.)
Nov. 17: She buys more baking equipment for $900 cash.
Nov. 20: She teaches her first class and collects $125 cash.
Nov. 25: Natalie books a second class for December 4 for $150. She receives $30 cash in advance as a down payment.
Nov. 30: Natalie pays $1,320 for a 1-year insurance policy that will expire on December 1, 2020.
Answer the questions below using an Excel spreadsheet. Use a new tab on the spreadsheet for each calculation used for a total of three tabs on your spreadsheet.
Prepare journal entries to record the November transactions.
Post the journal entries to general ledger accounts.
Show trial balance at November 30.