Question

Prepare accounting journal entries to record the November transactions

Nov. 8 Natalie purchases $500 of Cookie Creations' common stock
Nov. 11 Cookie Creations purchases paper and other office supplies for $95 (Use Supplies)
Nov. 14 Cookie Creations pays $125 to purchase baking supplies, such as flour, sugar, butter, and chocolate chips (use Supplies).
Nov. 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 mixerthat 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 transfersthe equipment into the business in exchange for additional common stock.
Nov. 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 9% note payable.Interest and the principal and repayable at maturity.
Nov. 17 Cookie Creations pays $900 for additional baking equipment.
Nov. 25 Natalie books a second class for December 5 for $150. She receives a $60 cash down payment, in advance
Nov. 29 Natalie teaches his first class, booked on November 18, and collects the $100 cash
Nov. 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 atthe end of December. (It should be treated as an asset called Website)
Nov. 30 Cookie Creations pays $1200 for a one-year insurance policy
Nov. 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 $300 with theschool principal. The principal says that he will pass it along to the business office will be paid some time in December.
Nov. 30 Natalie receives a $50 invoice for use of her cell phone. She uses her cell phone exclusively for Cookie Creations Inc. Business. The invoice is for servicesprovided in November, and payment is due on December 15.

Answer 1

question

Answer 2

Date Accounts Titles and Explanations Debit Credit 2011 8-Nov Cash 500 Common Stock 500 {Natalie purchases $500 of common stock} 11-Nov Supplies 95 Cash 95{Purchased $95 of office supplies} 14-Nov Supplies 125 Cash 125 {Purchased $125 of baking supplies} 15-Nov Equipment 300 Common Stock 300 {Equipment worth$300 exchanged for common stock} 16-Nov Cash 2,000 Note Payable 2,000 {Cash received in exchange for a Note Payable (2 year-9%) 17-Nov Equipment 900 Cash900 {Purchased $900 of baking equipment} 25-Nov Cash 60 Unearned Service Revenue 60 {Customer paid $60 in advance for class} 29-Nov Cash 100 ServiceRevenue 100 {Received cash for services performed} 30-Nov Asset 600 Accounts Payable 600 {Website created for the company on account due at the end ofDecember} 30-Nov Prepaid Insurance 1,200 Cash 1,200 {Paid for one year insurance policy} 30-Nov Accounts Receivable 300 Service Revenue 300 {Expectspayment of services provided at a later date} 30-Nov Cell Phone Expense 50 Accounts Payable 50