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CHAPTER 3
Cookie Creations
(Note: This is a continuation of the Cookie Creations from Chapters 1 and 2. Use the
information from the previous chapters and follow the instructions below using the
general ledger accounts you have already prepared.)
CC3 It is the end of November and Natalie has been in touch with her grandmother.
Her grandmother asked Natalie 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 following additional information.
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.)
