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Questions and Answers
What is the total amount Vaughn deposits into the new business account for Cookie Creations?
How much does Vaughn pay for advertising?
What is the worth of the baking equipment that Vaughn invests in the business?
How much cash does Vaughn's grandmother lend her for the business?
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What does Vaughn initially deposit into her personal bank account?
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How much does Vaughn spend on baking supplies?
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What is the purpose of preparing journal entries for the November transactions?
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What is the significance of indenting credit account titles when entering journal entries?
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When is it appropriate to select 'No Entry' for the account titles in a journal entry?
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What is the purpose of recording a down payment in advance for a future class?
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Study Notes
Business Financials for Cookie Creations
- Vaughn deposits a total of $15,000 into the new business account for Cookie Creations.
- Vaughn allocates $2,000 for advertising expenses to promote the business.
- The value of the baking equipment that Vaughn invests amounts to $8,000.
- Vaughn’s grandmother lends her $5,000 to support the business startup.
- Initially, Vaughn deposits $3,000 into her personal bank account for personal expenses.
Business Expenses
- Vaughn spends $1,500 on baking supplies to create her products.
Accounting Practices
- Preparing journal entries for November transactions serves the purpose of accurately recording financial activities for proper accounting.
- Indenting credit account titles is significant because it visually distinguishes them from debit account titles, enhancing clarity in journal entries.
- Selecting 'No Entry' is appropriate when a transaction does not affect financial accounts, such as internal transfers or non-cash transactions.
Future Planning
- Recording a down payment in advance for a future class ensures clear tracking of payments and obligations, aiding in cash flow management and planning for upcoming expenses.
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Description
Test your knowledge of accounting by answering questions about recording business transactions. This quiz is based on the activities of Vaughn Koebel and her business 'Cookie Creations'.
