Accounting ii#4 | Accounting homework help

 I need one Word document containing responses for Parts I and II (two-page minimum) and   two Excel spreadsheets containing Natalie’s journal transactions from Part I   and the depreciation tables from Part II. Use the same Word document that you used to   record your Part I responses (one page in length), and add your responses for   the Part II questions (1–5), which should be one page in length. A minimum of 2 pages and the two excel spreadsheets filled out.  Read carefully and answer fully.

There are no resources required for this   assignment; however, your Word document should be formatted using APA Style.   

Cookie Creations (Chapters 9 and 10)

This assignment will focus on the Cookie   Creations case study from Chapter 9 (page 9-37) and Chapter 10 (page 10-42)   of your textbook. There are two parts to this assignment. Review the case   situations for each part (i.e., in each chapter), and then complete the   instructions.

Part I

One of Natalie’s friends, Curtis Lesperance,   runs a coffee shop where he sells specialty coffees and prepares and sells   muffins and cookies. He is eager to buy one of Natalie’s fine European   mixers, which would enable him to make larger batches of muffins and cookies.   However, Curtis cannot afford to pay for the mixer for at least 30 days. He   asks Natalie if she would be willing to sell him the mixer on credit.

Natalie comes to you for advice. She asks   you to address the questions below.

  1. Curtis has given me a set of his most recent        financial statements. What calculations should I do with the data from        these statements, and what questions should I ask him after I have        analyzed the statements? How will this information help me decide if I        should extend credit to Curtis?
  2. Is there an alternative other than extending credit        to Curtis for 30 days?
  3. I am thinking seriously about being able to have my        customers use credit cards. What are some of the advantages and        disadvantages of letting my customers pay by credit card?

The following transactions occurred in June   through August 2020.

June 1: After much thought, Natalie sells a   mixer to Curtis on credit, terms n/30, for $1,150 (cost of mixer $620).

June 30:  Curtis calls Natalie. He is   unable to pay the amount outstanding for another month, so he signs a 1-month,   8.35% note receivable.

July 31: Curtis calls Natalie. He indicates   that he is unable to pay today but hopes to have a check for her at the end   of the week. Natalie prepares the journal entry to record the dishonor of the   note. She assumes she will be paid within a week.

Aug. 7: Natalie receives a check from Curtis   in payment of his balance owed.


  • Answer Natalie’s questions in a Word document.
  • Prepare journal entries for the transactions that        occurred in June, July, and August in an Excel spreadsheet. Round to the        nearest dollar. Note that the company uses a perpetual inventory system.        Use the Part I Excel        Template to        record your transactions.

To reiterate, you will write your responses   to Natalie’s questions (1–3) in a Word document, and you will complete the   journal transactions in an Excel spreadsheet. Your responses to Part I   (Natalie’s questions) should be a minimum of one page in length, and you will   add your responses for Part II to this document before submitting.

Part II

Natalie is also thinking of buying a van   that will be used only for business. The cost of the van is estimated at   $36,500. Natalie would spend an additional $2,500 to have the van painted. In   addition, she wants the back seat of the van removed so that she will have a   lot of room to transport her mixer inventory as well as her baking supplies.   The cost of taking out the back seat and installing shelving units is   estimated at $1,500. She expects the van to last 5 years, and she expects to   drive it for 200,000 miles. The annual cost of vehicle insurance will be   $2,400. Natalie estimates that at the end of the 5-year useful life, the van   will sell for $7,500. Assume that she will buy the van on August 15, 2020,   and it will be ready for use on September 1, 2020.

Natalie is concerned about the impact of the   van’s cost on her income statement and balance sheet. She has come to you for   advice on calculating the van’s depreciation.


  1. Determine the cost of the van.
  2. Prepare three depreciation tables for 2020, 2021, and        2022: one for straight-line depreciation (similar to the one in        Illustration 10-9), one for double-declining balance depreciation        (Illustration 10-13), and one for units-of-activity depreciation        (Illustration 10-11). Use the Part II Excel        Template to        determine depreciation. For units-of-activity, Natalie estimates that        she will drive the van as follows: 15,000 miles in 2020; 45,000 miles in        2021; and 50,000 miles in 2022. Recall that Cookie Creations has a        December 31 year-end.
  3. What impact will the three methods of depreciation        have on Natalie’s balance sheet at December 31, 2020? What impact will        the three methods have on Natalie’s income statement in 2020?
  4. What impact will the three methods of depreciation        have on Natalie’s income statement over the van’s total 5-year useful        life?
  5. What method of depreciation would you recommend        Natalie use, and why?

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.

Click Here to Make an Order Click Here to Hire a Writer
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.