This assignment is a continuation of the Cookie Creations case study from previous chapters. From the information gathered in the previous chapters, read the continuation of the Cookie Creations case study below.

Part I

Because Natalie has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of European mixers. The owner of Kzinski Supply Company has approached Natalie to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately $575, and Natalie would sell each one for $1,150. Natalie comes to you for advice on how to account for these mixers. Each appliance has a serial number and can be easily identified.

Natalie has come to you for your advice on how to account for these mixers and asks you the questions below, which you must address.

1. Would you consider these mixers to be inventory, or should these mixers be classified as supplies or equipment?
2. Which inventory tracking system should Natalie use: perpetual or periodic?
3. Which system do you think is better: perpetual or periodic?
4. Which system would you recommend for the type of inventory that Natalie wants to sell?
5. How often does Natalie need to count inventory if she maintains it using the perpetual system? In contrast, does she need to count inventory at all?

Provide your responses to the questions in a Word document. Use the unit lesson, required unit resources, and suggested unit resources to formulate your response. 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.

Part II

Natalie is busy establishing both divisions of her business (cookie classes and mixer sales), and she is completing her business degree. Her goals for the next 11 months are to sell one mixer per month and to give two to three classes per week.

The cost of the fine European mixers is expected to increase. Natalie has just negotiated new terms with the owner of Kzinski Supply Company, which will include shipping costs in the negotiated purchase price (mixers will be shipped free on board (FOB) destination). Assume that Natalie has decided to use a periodic inventory system and now must choose a cost flow assumption for her mixer inventory. The transactions listed below occur in February to May 2020.

Feb. 2: Natalie buys two deluxe mixers on account from Mixer Supply Company for $1,200 ($600 each), FOB destination, terms n/30.

Feb. 16: She sells one deluxe mixer for $1,150 cash.

Feb. 25: She pays the amount owed to Mixer Supply Company.

Mar. 2: She buys one deluxe mixer on account from Mixer Supply Company for $618, FOB destination, terms n/30.

Mar. 30 : Natalie sells two deluxe mixers for a total of $2,300 cash.

Mar. 31: She pays the amount owed to Kzinski Supply Company.

Apr. 1 : She buys two deluxe mixers on account from Mixer Supply Company for $1,224 ($612 each), FOB destination, terms n/30.

Apr. 13: She sells three deluxe mixers for a total of $3,450 cash.

Apr. 30: Natalie pays the amount owed to Mixer Supply Company.

May 4: She buys three deluxe mixers on account from Mixer Supply Company for $1,875 ($625 each), FOB destination, terms n/30.

May 27: She sells one deluxe mixer for $1,150 cash.

For Part II, determine the cost of goods available for sale. You will recall from Chapter 5 (see Part I above) that at the end of January, Cookie Creations had three mixers on hand at a cost of $575 each. For Part II of the assignment, you will calculate the following items: ·

• ending inventory,
• cost of goods sold,
• gross profit, and
• gross profit rate under each of the following methods: last-in, first-out (LIFO); first-in, first-out (FIFO); and average cost.

Submit Part I and Part II in a single Word document. Your total combined submission should include two pages for Part I and the solutions to Part II.

This assignment is a continuation of the Cookie Creations case study from Chapters 1 and 2. You will use the information from the previous case study’s and follow the instructions below using the general ledger accounts that you previously created.

Review the case information below then, complete action items a–c).

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 used previously ($3,075) and based on the new information provided above, complete the tasks below.

1. Prepare and post the adjusting journal entries.
2. Prepare an adjusted trial balance.
3. 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.

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.)

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.

1. Prepare journal entries to record the November transactions.
2. Post the journal entries to general ledger accounts.
3. 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.

Create a PowerPoint Presentation for your selected topic from assignment #1. This would be a PowerPoint that you would use if you were selected to present your research at a professional conference. Please use the following guidelines to complete your PowerPoint:

1) You are to use a plain white slide design.

2) The first slide will include: Name of the topic (In 36 Times New Roman Font: Presented by: Your Name (In 28 Times New Roman Font); and a Graphic that depicts the topic. The color of the font used must be dark, so it will show-up easily.

3) All slide headings should be typed in Times New Roman Font that is no smaller than 36 with all other information in 28 Times New Roman Font. If there is not enough room on the slide for all the information, then the next slide may be labeled: Continued (Placed in the top left-hand side of the slide). Typing should not go to the end of the left, right, top, or bottom of the slide. In other words, make sure there is a margin on all four sides of each slid

3) There must be graphics within the ppt. presentation that are appropriate depiction of the words on that slide. Graphics do not have to be on every slide, just the ones where it appears to need something more to complete the space.

4) There needs to be links to websites that pertain to your slide/topic.

5) There needs to be a You- Tube presentation within the Ppt. that relates to your topic that is different from your multi-media presentation (you do not have to be visible in this one, select a You-Tube video that addresses your topic and embed it into your Ppt. This Ppt. should look professional, as if it was created by a professional.