Accounting and the recording process

The case study allows you to apply what you have learned about accounting and the recording process.

This assignment will enable you to practice what you have learned so far. 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 s 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 s 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.

You should create a new tab on your spreadsheet for each calculation used for a total of three tabs on your spreadsheet. Please show your work, and do not take any shortcuts. Make sure to complete item “a” completely before moving to item “b,” and then move to item “c.” You cannot jump ahead unless you have completed each step sequentially in full. Submit the Excel document in Blackboard upon completion.

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