Unit IV Case Study
In this assignment is a continuation of the Cookie Creations case study from Chapters 1–3. You will use the information from the previous chapters and from this chapter to complete the actions for the case study and to apply what you have learned to this point. The Cookie Creations case study for Chapter 4 can be found below and also on pp. 4-51 to 4-52 in the textbook. The textbook provides you with the adjusted trial balance, and it is also located below for quick reference. Read the case information, and complete the actions listed below. Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Natalie prepared the following adjusted trial balance. Using the information from the adjusted trial balance, complete the tasks below. a. Prepare an income statement and an owner’s equity statement for the 2 months ended December 31, 2019, and a classified balance sheet as of December 31, 2019. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2021. b. Natalie has decided that her year-end will be December 31, 2019. Prepare and post-closing entries as of December 31, 2019. c. Prepare a post-closing trial balance. Make sure to complete item “a” completely before moving to item “b,” and then move to item “c.” You cannot jump ahead unless you have completed each step sequentially in full. Submit the Excel document
Course Syllabus Course Syllabus Course Description Provides an introduction to business accounting. Topics include accounting concepts and principles, financial statements, internal control design, and accounting for partnerships. Students demonstrate knowledge and comprehension of the foundational theories and methodological tools utilized in accounting. Theoretical constructs are applied to solve real-world accounting applications. Course Textbook(s) Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2018). Accounting principles (13th ed.). Wiley. https://online.vitalsource.com/#/books/9781119411017 Course Learning Outcomes Upon completion of this course, students should be able to: 1. Examine the accounting cycle. 2. Identify business transactions. 3. Prepare inventory systems and costing methods. 4. Detail the classes and transactions of liabilities. 5. Apply the use of financial statements to the decision-making process. 6. Explain internal accounting controls. 7. Compare and contrast International Financial Reporting Standards (IFRS) to Generally Accepted Accounting Principles (GAAP). Academic Integrity Honesty and integrity are taken very seriously at Waldorf University. All students should be familiar with the Waldorf University Academic Integrity Policy (found in the current Student Handbook) and the consequences that will result from breaches of this policy. Credits Upon completion of this course, the students will earn 3.00 hours of college credit. Course Structure 1. Study Guide: Course units contain a Study Guide that provides students with the learning outcomes, unit lesson, required reading assignments, and supplemental resources. 2. Learning Outcomes: Each unit contains Learning Outcomes that specify the measurable skills and knowledge students should gain upon completion of the unit. 3. Unit Lesson: Unit Lessons, which are located in the Study Guide, discuss lesson material. 4. Reading Assignments: Units contain Reading Assignments from one or more chapters from the textbook and/or outside resources. 5. Suggested Reading: Suggested Readings are listed within the Study Guide. Students are encouraged to read the resources listed if the opportunity arises, but they will not be tested on their knowledge of the Suggested Readings. 6. Learning Activities (Nongraded): Nongraded Learning Activities are provided to aid students in their course of study. 7. Discussion Boards: Students are required to submit Discussion Board posts in Units I-VIII. Discussion Boards BUS 2201, Principles of Accounting BUS 2201, Principles of Accounting 1 provide students the opportunity for student-to-student and professor-to-student interaction based on relevant course concepts and ideas. Specific information about accessing the Discussion Board rubric is provided below. 8. Unit Assignments: Students are required to submit for grading Unit Assignments. Specific information and instructions regarding these assignments are provided below. Grading rubrics are included with each assignment. Specific information about accessing these rubrics is provided below. 9. Ask the Professor: This communication forum provides students with an opportunity to ask their professor general questions or questions related to course content. 10. Student Break Room: This communication forum allows for casual conversation with other classmates. Unit Assignments Unit I Case Study Cookie Creations (Chapter 1) The assignments for this course will focus on the Cookie Creations case study from the textbook. This is the beginning of the case involving Natalie, who is investigating the possibility of starting her own business. For this assignment, you will apply what you have learned from the unit lesson and the required unit resources. This assignment will allow you to practice what you have learned so far. You will be working on this same case study throughout this course. The Cookie Creations case study starts on p. 1-43 in the textbook. Read the case study, and answer the questions below. a. What form of business organization (i.e., proprietorship, partnership, or corporation) do you recommend that Natalie use for her business? Discuss the benefits and weaknesses of each form, and explain the reasons for your choice. b. Will Natalie need accounting information? If yes, what information will she need, and why? How often will she need this information? c. Identify specific asset, liability, and owner’s equity accounts that Cookie Creations will likely use to record its business transactions. d. Should Natalie open a separate bank account for the business? Why, or why not? Please respond to each question substantively as the highest grades will be reserved for those that thoroughly answer the questions and show an understanding of the concepts from Chapter 1. Your responses to these questions should be supported by what you have learned from this unit, your textbook, and additional resources. Your response should be a minimum of two pages in length and include at least two references. Adhere to APA Style when creating citations and references for this assignment. Unit II Case Study Cookie Creations (Chapter 2) This assignment is a continuation of the Cookie Creations case study, which began in Chapter 1. From the information gathered in the previous chapter, read the continuation of the Cookie Creations case study in Chapter 2 of the textbook on p. 2-42. The case study allows you to apply what you have learned about accounting and the recording process. This assignment will enable you to practice what you have learned so far. After researching the different forms of business organization, Natalie decides to operate Cookie Creations as a proprietorship. She then starts the process of getting the business running. In November 2019, the following activities listed below take place. Nov. 8: Natalie cashes her U.S. Savings Bonds and receives $520, which she deposits in her personal bank account. Nov. 8: She opens a bank account under the name “Cookie Creations” and transfers $500 from her personal account to the new account. Nov. 11: Natalie pays $65 for advertising. Nov. 13: She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $125 cash. (Hint: Use the Supplies account.) Nov. 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. Nov. 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 on the balance sheet as the last liability.) BUS 2201, Principles of Accounting 2 Nov. 17: She buys more baking equipment for $900 cash. Nov. 20: She teaches her first class and collects $125 cash. Nov. 25: Natalie books a second class for December 4 for $150. She receives $30 cash in advance as a down payment. Nov. 30: Natalie pays $1,320 for a 1-year insurance policy that will expire on December 1, 2020. Answer the questions below using an Excel spreadsheet. You should create a new tab on your spreadsheet for each calculation used for a total of three tabs on your spreadsheet. a. Prepare journal entries to record the November transactions. b. Post the journal entries to general ledger accounts. c. Prepare a trial balance at November 30. Please show your work, and do not take any shortcuts. Make sure to complete item “a” completely before moving to item “b,” and then move to item “c.” You cannot jump ahead unless you have completed each step sequentially in full. Submit the Excel document in Blackboard upon completion. Unit III Case Study Cookie Creations (Chapter 3) This assignment is a continuation of the Cookie Creations case study from Chapters 1 and 2. You will use the information from the previous chapters and follow the instructions below using the general ledger accounts that you previously created. Review the case information below and also on p. 3-54 of the textbook. Then, complete action items a–c. This assignment will allow you to practice what you have learned so far. It is the end of November, and Natalie has been in touch with her grandmother. Natalie’s grandmother asked her how well things went in her first month of business. Natalie, too, would like to know if she has 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 information shown below. 1. A count reveals that $35 of baking supplies were used during November. 2. Natalie estimates that all of her baking equipment will have a useful life of 5 years or 60 months. (Assume Natalie decides to record a full month’s worth of depreciation, regardless of when the equipment was obtained by the business.) 3. Natalie’s grandmother has decided to charge an interest of 6% 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 cookies. The next day, Natalie prepares an invoice for $300 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 $45. The bill is for utilities consumed by Natalie’s business during November is due December 15. The trial balance from Chapter 2 is presented below. Using the trial balance from Chapter 2 and based on the new information provided above, complete the tasks below. a. Prepare and post the adjusting journal entries. b. Prepare an adjusted trial balance. c. Using the adjusted trial balance, calculate Cookie Creations’ net income or net loss for the month of November 2019. Note: Do not prepare an income statement. Make sure to complete item “a” completely before moving to item “b,” and then move to item “c.” You cannot jump ahead unless you have completed each step sequentially in full. Submit the Excel document in Blackboard upon completion. BUS 2201, Principles of Accounting 3 Unit IV Case Study Cookie Creations (Chapter 4) This assignment is a continuation of the Cookie Creations case study from Chapters 1–3. You will use the information from the previous chapters and from this chapter to complete the actions for the case study and to apply what you have learned to this point. The Cookie Creations case study for Chapter 4 can be found below and also on pp. 4-51 to 4-52 in the textbook. The textbook provides you