prepare journal entries to record the november transactions 572241

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 fl our, 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, 2011.