After researching the different forms of business organization, Natalie 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. The following trail balance for november 30. Cash 730, supplies 100, prepaid insurance 1030, equipment 900, unearned services revenue 20, notes Payable 2,100, owner's Capital 590, service Revenue 100, advertising Expense 50, totals debt- $2810 credit-2810.
Nov.8 Natalie cashes her u.s saving bonds and received 410, which she deposited in her personal account. Nov 8, she opens a bank account under the name Cookie Creations and transfers 390 from her personal account to the new account. Nov,11 Natalie pays 50 for advertising. Nov 13, she buys supplies, for 100. Nov.14 Natalie starts to gather some baking equipment to take with her when she teaching the Cookie class. She has an excellent top-of-the- line food processor and mixer that originally cost her 590. Natalie decides to start using her new business. She estimates that the equipment is currently worth 200. She invest the equipment into the business. Nov.16 Natalie realizes that her initial cash investment is nit enough. Her grandmother lends her 2,100 cash, for which Natalie sings a note payable in the name of the business. Natalie deposit the money into the business account. ( Hit: the note dose not have to be repaid for 24 months. As a result the note payable should be in the accounts as the last liability and also on the balance sheet as the last liability). Nov 17. She buys more baking equipment for 700 cash. Nov.20 she teaches her first class and collects 100 cash. Nov 25 Natalie books a second class for December 4 foe 120. She receives 20 cash in advance as down payment. Nov 30. Natalie pays 1,030 for one-year insurance policy that will expire on December 1,2022. It's the end of november, and Natalie has been in touch with her grandmother. Her grandmother asked Natalie how well things went in her first month of business. Natalie,too, would like to know if she been profitable or not during november. Natalie realizes that in order to determine Cookie Creations income, she must first make adjustments. Natalie puts together the following additional information. 1, a count reveals that 25 of the baking supplies were used during november. 2, Natalie estimates that all of her baking equipment will have a useful live of 5 years or 60 months. ( Assume Natalie decides to record a full months worth od depreciation, regardless of when the equipment was obtained by the business.) 3. Natalie's grandmother has decided to charge interest of 8% on the note payable extended on november 16. The loan plus interest is to be repaid in 24 months.( Assume that half a month of interest accrued during november.) 4. ON november 30, a friend of Natalie's asks her to teach a class at the neighborhood school. Natalie agrees and teaches a group of 35- first-grade students how to make gingerbread Cookie. The next day, Natalie prepares an invoice for 230 and leaves it with the school principal. The principal says that he will pass the invoice along to the head office, and it will be paid sometime in December. 5. Natalie receives a utility bill for 35. The bill is for utilities consumed by Natalie's business during november and is due December 15. Using the following information above, do the following. (A1) prepare the adjusted journal entries. (A2) post the adjusting journal entries. (B) prepare an adjusted trial balance.