Please provide guidance in completing the following:
In November 2006, after incorporating, Cookie Creations Inc., the owner "Natalie" begins operations. She has decided to not pursue the offer to supply cookies to Biscuits. Instead she will focus on offering cooking classes. The following events occur.
Complete steps a-c, explaining the steps you would use to complete the instructions.
(a) Prepare journal entries to record the November transactions.
(b) Post the journal entries to the general ledger accounts.
(c) Prepare a trial balance at November 30, 2006.
Information related to the assignment:
Nov. 8 Natalie cashes in her U.S. 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 Natalie designs a brochure and a poster to advertise the
company and the services available.
11 The brochures and posters are printed, at a cost of $95.
They will be distributed as the opportunity arises.
14 Cookie Creations purchases baking supplies, such as flour, s
sugar, butter, and chocolate chips, for $125.
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 processor and mixer that originally
cost 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 equipment
into the business in exchange for additional common stock.
16 The company needs more cash to sustain its operations.
Natalie's grandmother lends the company $2,000 cash, in
exchange for a two-year, 6% note payable. Interest and the
principal are repayable at maturity.
17 Cookie Creations purchases more baking equipment for $900.
18 Natalie books her first class for November 29 for $100.
25 Natalie books a second class for December 5 for $125. She
receives a $50 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 $600 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.)
30 Cookie Creations purchases a one-year insurance policy for
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 $250
Trial balance total $3,850
Please see the attached word document for answers, which are marked in orange in the document. I "triple" checked my calculations for the trial balance and I got ...