The cake Basket has recently started a business named Cookie Creations. Following Data is given for the month of November. 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 class for December 4 for $150. She receives $30 cash in advance as a down payment. 30 Natalie pavs $1,320 for a one-vear insurance policy that will expire on December 1, 2017. Required: Pass the journal entries (double entries) of above transactions (according to the proper format as shown in lecture)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 2:
The cake Basket has recently started a business named Cookie Creations. Following Data is given for the
month of November.
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 class for December 4 for $150. She receives $30 cash in advance as
a down payment.
30 Natalie pays $1,320 for a one-year insurance policy that will expire on December 1, 2017.
Required: Pass the journal entries (double entries) of above transactions (according to the proper
format as shown in lecture)
Transcribed Image Text:Question 2: The cake Basket has recently started a business named Cookie Creations. Following Data is given for the month of November. 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 class for December 4 for $150. She receives $30 cash in advance as a down payment. 30 Natalie pays $1,320 for a one-year insurance policy that will expire on December 1, 2017. Required: Pass the journal entries (double entries) of above transactions (according to the proper format as shown in lecture)
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