Part 1 Because Natalie has been so successful with Cookie Creations and her friend Curtis Lesperance has been just as successful with his coffee shop, they 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.

Natalie and Curtis are very excited about this new business venture. They come to you with information they have gathered about their companies and with a number of questions.

Part 2 After establishing their company’s fiscal year to be October 31, Natalie and Curtis began operating Cookie & Coffee Creations Inc. on November 1, 2012. On that date, they issued both preferred and common stock. Natalie and Curtis now want to prepare financial information for the first year of operations.