Buy Principles Of Accounting Assignment

Buy Principles Of Accounting Assignment
This assignment is a continuation of the Cookie Creations case study. The case study allows you to apply what you have learned about corporations and stocks from the unit lesson and required unit resources.
Natalie’s friend Curtis Lesperance decides to meet with Natalie after hearing that her discussions about a possible business partnership with her friend Katy Peterson have failed. Natalie had decided that forming a partnership with Katy, a high school friend, would hurt their friendship. Natalie had also concluded that she and Katy were not compatible to operate a business venture together.
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Because Natalie has been so successful with Cookie Creations and Curtis has been just as successful with his coffee shop, they both conclude that they could benefit from each other’s business expertise. Curtis and Natalie next evaluate the different types of business organization. Because of the advantage of limited personal liability, they decide to form a corporation.
Curtis has operated his coffee shop for 2 years. He buys coffee, muffins, and cookies from a local supplier. Natalie’s business consists of giving cookie-making classes and selling fine European mixers. The plan is for Natalie to use the premises that Curtis currently rents to give her cooking-making classes and demonstrations of the mixers that she sells. Natalie will also hire, train, and supervise staff to bake the cookies and muffins sold in the coffee shop. By offering her classes on the premises, Natalie will save on travel time going from one place to another. Another advantage is that the coffee shop will have one central location for selling the mixers.
The current market values of the assets of both businesses are listed below.
Curtis’s Coffee
Cash: $7,130
Accounts Receivable: $100
Inventory: $450
Equipment: $2,500
Cookie Creations
Cash: $12,000
Buy Principles Of Accounting Assignment
Accounts Receivable: $800
Inventory: $1200
Equipment $1,000*
*Cookie Creations decided not to buy the delivery van considered in Unit II.
Combining forces will also allow Natalie and Curtis to pool their resources and buy a few more assets to run their new business venture.
Curtis and Natalie then meet with a lawyer and form a corporation on November 1, 2020, called Cookie

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