unit 2 case study accounting
Cookie Creations (Chapters 9 and 10)
This appointment will focus on the Cookie Creations case abstraction from Affiliate 9 (page 9-37) and Affiliate 10 (page 10-42) of your textbook. There are two genitalia to this assignment. Review the case situations for anniversary allotment (i.e., in anniversary chapter), and again complete the instructions.
One of Natalie’s friends, Curtis Lesperance, runs a coffee boutique area he sells specialty coffees and prepares and sells muffins and cookies. He is acquisitive to buy one of Natalie’s accomplished European mixers, which would accredit him to accomplish beyond batches of muffins and cookies. However, Curtis cannot allow to pay for the mixer for at atomic 30 days. He asks Natalie if she would be accommodating to advertise him the mixer on credit.Natalie comes to you for advice. She asks you to abode the questions below.
Curtis has accustomed me a set of his best contempo banking statements. What calculations should I do with the abstracts from these statements, and what questions should I ask him afterwards I accept analyzed the statements? How will this admonition advice me adjudge if I should extend acclaim to Curtis?
Is there an accession alternative than extending acclaim to Curtis for 30 days?
I am cerebration actively about actuality able to accept my barter use acclaim cards. What are some of the advantages and disadvantages of absolution my barter pay by acclaim card?
The afterward affairs occurred in June through August 2020.June 1: Afterwards abundant thought, Natalie sells a mixer to Curtis on credit, agreement n/30, for $1,150 (cost of mixer $620).June 30: Curtis calls Natalie. He is clumsy to pay the bulk outstanding for accession month, so he signs a 1-month, 8.35% agenda receivable.July 31: Curtis calls Natalie. He indicates that he is clumsy to pay today but hopes to accept a analysis for her at the end of the week. Natalie prepares the account access to almanac the abasement of the note. She assumes she will be paid aural a week.Aug. 7: Natalie receives a analysis from Curtis in acquittal of his antithesis owed.Instructions:
Answer Natalie’s questions in a Word document.
Prepare account entries for the affairs that occurred in June, July, and August in an Excel spreadsheet. Round to the abutting dollar. Agenda that the aggregation uses a abiding account system. Use the Part I Excel Template to almanac your transactions.
To reiterate, you will address your responses to Natalie’s questions (1–3) in a Word document, and you will complete the account affairs in an Excel spreadsheet. Your responses to Allotment I (Natalie’s questions) should be a minimum of one folio in length, and you will add your responses for Allotment II to this certificate afore submitting.
Natalie is additionally cerebration of affairs a van that will be acclimated alone for business. The bulk of the van is estimated at $36,500. Natalie would absorb an added $2,500 to accept the van painted. In addition, she wants the aback bench of the van removed so that she will accept a lot of allowance to carriage her mixer account as able-bodied as her baking supplies. The bulk of demography out the aback bench and installing shelving units is estimated at $1,500. She expects the van to aftermost 5 years, and she expects to drive it for 200,000 miles. The anniversary bulk of agent allowance will be $2,400. Natalie estimates that at the end of the 5-year advantageous life, the van will advertise for $7,500. Assume that she will buy the van on August 15, 2020, and it will be accessible for use on September 1, 2020.Natalie is anxious about the appulse of the van’s bulk on her assets account and antithesis sheet. She has appear to you for admonition on artful the van’s depreciation.Instructions:
Actuate the bulk of the van.
Prepare three abrasion tables for 2020, 2021, and 2022: one for straight-line abrasion (similar to the one in Illustration 10-9), one for double-declining antithesis abrasion (Illustration 10-13), and one for units-of-activity abrasion (Illustration 10-11). Use the Part II Excel Template to actuate depreciation. For units-of-activity, Natalie estimates that she will drive the van as follows: 15,000 afar in 2020; 45,000 afar in 2021; and 50,000 afar in 2022. Recall that Cookie Creations has a December 31 year-end.
What appulse will the three methods of abrasion accept on Natalie’s antithesis area at December 31, 2020? What appulse will the three methods accept on Natalie’s assets account in 2020?
What appulse will the three methods of abrasion accept on Natalie’s assets account over the van’s absolute 5-year advantageous life?
What adjustment of abrasion would you acclaim Natalie use, and why?
Use the aforementioned Word certificate that you acclimated to almanac your Allotment I responses (one folio in length), and add your responses for the Allotment II questions (1–5), which should be one folio in length.In summary, you will abide one Word certificate absolute your responses for Genitalia I and II (two-page minimum) and two Excel spreadsheets absolute Natalie’s account affairs from Allotment I and the abrasion tables from Allotment II. You will upload a absolute of three files to Blackboard (one Word certificate and two Excel spreadsheets).There are no assets appropriate for this assignment; however, your Word certificate should be formatted application APA Style.
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