After researching the different forms of business organization. Sheridan Koebel decides to operate "Cookie Creations" as a
proprietorship. She then starts the process of getting the business running. In November 2021, the following activities take place.
Nov. 8 Sheridan cashes her U.S. Savings Bonds and receives [tex]$560, which she deposits in her personal bank account. 8 She opens a bank account under the name "Cookie Creations" and transfers $[/tex]540 from her personal account to the new
account.
11
Sheridan pays [tex]$70 for advertising. 13 14 44 16 She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $[/tex]135 cash. (Hint: Use Supplies account.)
Sheridan 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 [tex]$810. Sheridan decides to start using it only in her new business. She estimates that the equipment is currently worth $[/tex]320. She invests the equipment in the business.
Sheridan realizes that her initial cash investment is not enough. Her grandmother lends her [tex]$2,200 cash, for which Sheridan signs a note payable in the name of the business. Sheridan 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 $[/tex]970 cash.
20
She teaches her first class and collects [tex]$135 cash. 25 Sheridan books a second class for December 4 for $[/tex]160. She receives [tex]$30 cash in advance as a down payment. 30 Sheridan pays $[/tex]1,430 for a one-year insurance policy that will expire on December 1, 2022.
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