CCC2 After researching the different forms of business organization, Natalie Koebel decides to operate “Cookie Creations” as a proprietorship.

CCC2 After researching the different forms of business organization, Natalie Koebel decidesto operate “Cookie Creations” as a proprietorship. She then starts the process of getting the business running. In November 2009, 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 fromher personal account to the new account.11 Natalie pays $165 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Supplies.)13 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125cash.14 Natalie starts to gather some baking equipment to take with her when teaching thecookie 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 thebusiness.16 Natalie realizes that her initial cash investment is not enough. Her grandmother lendsher $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 nothave to be repaid for 24 months.As a result, the note payable should be reported in theaccounts 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 advanceas a down payment.30 Natalie pays $1,320 for a one-year insurance policy that will expire on December 1,2010.Instructions(a) Prepare journal entries to record the November transactions.(b) Post the journal entries to general ledger accounts.(c) Prepare a trial balance at November 30.

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