Prepare journal entries to record the November transactions. (List all debit entries before credit entries. Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter O for the amounts. Record journal entries in the order displayed in the problem.)DateOv. 11lov. 8ov. 8ov. 17ov. 30Account Titles and ExplanationAdvertising ExpenseSupplies Expense(To record cash deposited in personal bank account)DepositWithdrawl(To record amount transferred from personal accountto Cookie creation account)DepositCashBaking EquipmentInsurance PolicyDebit701305209401,370Credit540520www.2,100 fter researching the different forms of business organization. Lily Koebel decides to operate "Cookie Creations" as a proprietorship.he then starts the process of getting the business running. In November 2021, the following activities take place.Nov. 88111314(a)1617202530Lily cashes her U.S. Savings Bonds and receives $540, which she deposits in her personal bank account.She opens a bank account under the name "Cookie Creations" and transfers $520 from her personal account to the newaccount.Lily pays $70 for advertising.She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $130 cash. (Hint: Use Supplies account.)Lily 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 $780. Lily decides to start using it only in her new business.She estimates that the equipment is currently worth $310. She invests the equipment in the business.Lily realizes that her initial cash investment is not enough. Her grandmother lends her $2,100 cash, for which Lily signs anote payable in the name of the business. Lily 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 the accounts as the last liability andalso on the balance sheet as the last liability.)She buys more baking equipment for $940 cash.She teaches her first class and collects $130 cash.Lily books a second class for December 4 for $160. She receives $30 cash in advance as a down payment.Lily pays $1,370 for a one-year insurance policy that will expire on December 1, 2022.

A journal entry is like a financial diary where businesses record all their money-related…

Answered: fter researching the different forms of…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter7: Deductions And Losses: Certain Business Expenses And Losses

Section: Chapter Questions

Problem 14DQ

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After researching the different forms of business organization, Natalie Koebel decides to operate “Cookie Creations” as a corporation. She then starts the process of getting the business running. In November 2022, 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 from her personal account to the new account in exchange for common stock.         11      Natalie pays $65 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Expense.)         13      She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash.         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…
After researching the different forms of business organization, Natalie Koebel decides to operate “Cookie Creations” as a corporation. She then starts the process of getting the business running. In November 2022, 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 from her personal account to the new account in exchange for common stock.         11      Natalie pays $65 to have advertising brochures and posters printed. She plans to distribute these as opportunities arise. (Hint: Use Advertising Expense.)         13      She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash.         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…
S. Waweru starts business on 1st July 2020, when he deposits Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:- 2020 July 3              He purchases shop fittings for sh. 2,500 and pays by cheque. July 4              He buys a motor vehicle from AB & Co. on credit Sh. 3,000. July 6              He buys stock for Sh. 1,500 and pays through bank. July 8              He sells goods for cash Sh.1,000. July 10            Buys goods on credit from XY & Co. for Sh. 1,200 July 12            Sells goods to A. Smith for Sh. 900 on credit July 13            Pays wages Sh. 120 by cash July 14            A. Smith returns goods worth Sh. 200 July 15            Pays to AB & Co. Sh. 3,000 by cheque July 17            Goods returned to XY & Co. amounting to Sh. 350 July 21            Receives from A. Smith a cheque for Sh. 700 July 25            Sells goods for cash Sh. 300. July 30…
S. Waweru starts business on 1st July 2020, when he deposits Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:- 2020 July 3 He purchases shop fittings for sh. 2,500 and pays by cheque. July 4 He buys a motor vehicle from AB & Co. on credit Sh. 3,000. July 6 He buys stock for Sh. 1,500 and pays through bank. July 8 He sells goods for cash Sh.1,000. July 10 Buys goods on credit from XY & Co. for Sh. 1,200 July 12 Sells goods to A. Smith for Sh. 900 on credit July 13 Pays wages Sh. 120 by cash July 14 A. Smith returns goods worth Sh. 200 July 15 Pays to AB & Co. Sh. 3,000 by cheque July 17 Goods returned to XY & Co. amounting to Sh. 350 July 21 Receives from A. Smith a cheque for Sh. 700 July 25 Sells goods for cash Sh. 300. July 30…
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