Need help with 8-11
Create financial statements by properly employing prescribedmethods in accordance with generally accepted accountingprinciples: A. Step Eight: Prepare the financial statements. Notethat you must use your adjusted trial balance to prepare the incomestatement, statement of ownerâs equity, and balance sheet. You mustcomplete these statements in this order, as there areinterdependencies among them. B. Step Nine: Complete the âClosingEntriesâ tab in your workbook by closing all temporary incomestatement amounts to create closing entries. C. Step Ten: Preparethe âPost Closing Trial Balanceâ tab for the next accountingperiod. [ACC-201-03] D. Step Eleven: Prepare the reversing entriesin the âReversing Entriesâ tab of your workbook.
Here is all of the info to go along with it:
July 1: You take $10,000 from your personal savings account andbuy common stock in Peyton Approved. July 1: Purchase $6,500 inbaking supplies from vendor, on account. July 3: Your parents lendthe company $10,000 cash in exchange for a two-year, 6% notepayable. Interest and the principal are repayable at maturity. July7: Enter into a lease agreement for bakery space. The agreement isfor 1 year. The rent is $1,500 per month, and the last monthâs rentpayment of $1,500 is required at time of lease agreement. Thepayment was made in cash. Lease period is effective July 1, 2018,through June 30, 2019. July 10: Pay $375 to the county for abusiness license. July 11: Purchase a cash register for $250(deemed to be not material enough to qualify as depreciableequipmentâuse misc. exp.). July 13: You have baking equipment,including an oven and mixer, which you have been using for yourhome-based business and will now start using in the bakery. Youestimate that the equipment is currently worth $6,000, and youtransfer the equipment into the business in exchange for additionalcommon stock. The equipment has a 5-year useful life. July 13: Pay$200 for business cards/flyers/posters/ads to use for advertising.July 14: Pay $300 for office supplies. July 15: Hire part-timehelper to be paid $12 per hour. Pay periods are the 1st through the15th and 16th through the end of the month, with paydays being the20th for the first pay period and the 5th of the following monthfor the second pay period. (No entry is required on this date; itis here for informational purposes only.) July 30: Receivedtelephone bill for July in amount of $75. Payment is due on August10. 6 July 31: Pay $2,400 for a 12-month insurance policy. Policyeffective dates are August 1, 2018, through July 31, 2019. July 31:Accrue wages earned for employee for period of 16th through 31st ofJuly (Wage calculations table provided below). July 31: Total Julybakery sales were $15,000. $5,000 of these sales are on accountsreceivable. Step Two Data (Click on the link to return to theprompt.) The following events occur in August, 2018: August 5: Paidemployee for period ending 7/31. August 8: Receive payments fromcustomers towards accounts receivable in amount of $3,800. August10: Paid July telephone bill. August 15: Purchase additional bakingsupplies in amount of $5,000 from vendor, on account. August 15:Accrue wages earned for employee from period of 1st through 15th ofAugust (Wage calculations table provided below). August 15: Payrent on bakery space. August 18: Receive payments from customerstowards accounts receivable in amount of $3,000. August 20: Paid$8,500 toward baking supplies vendor payable. August 20: Payemployee for period ending 8/15. August 22: $300 in office suppliespurchased. August 31: Received telephone bill for August in amountof $75. Payment is due on September 10. 7 August 31: Accrue wagesearned for employee for period of August 16th through August 31st(Wage calculations table provided below). August 31: August bakerysales total $20,000. $7,500 of this total is on accountsreceivable. Step Three (Click on the link to return to the prompt.)Updated Scenario: Many customers have been asking for morehypoallergenic products, so in September you start carrying a lineof hypoallergenic shampoos on a trial basis. The followinginformation relates to the purchase and sales of the shampoo: ï· Youuse the perpetual inventory method. Although you could use thefollowing valuation methodsâFIFO, LIFO, or weighted average, youchoose to use the FIFO method. Data: The following events occur inSeptember, 2018: September 1: Paid dividends to self in amount of$10,000. September 5: Pay employee for period ending 8/31.September 7: Purchase merchandise for resale. See âInventoryValuationâ tab for details. September 8: Receive payments fromcustomers toward accounts receivable in amount of $4,000. September10: Pay August telephone bill. September 11: Purchase bakingsupplies in amount of $7,000 from vendor on account. September 13:Paid on supplies vendor account in amount of $5,000. September 15:Accrue employee wages for period of September 1 through September15. September 15: Pay rent on bakery space: $1,500. 8 September 15:Record merchandise sales transaction. See âInventory Valuationâ tabfor details. September 15: Record impact of sales transaction onCOGS and the inventory asset. See âInventory Valuationâ tab fordetails. September 20: Pay employee for period ending 9/15.September 20: Purchase merchandise inventory for resale tocustomers. See âInventory Valuationâ tab for details. September 24:Record sales of merchandise to customers. See âInventory Valuationâtab for details. September 24: Record impact of sales transactionon COGS and the inventory asset. See âInventory Valuationâ tab fordetails. September 30: Purchase merchandise inventory for resale tocustomers. See âInventory Valuationâ tab for details. September 30:Accrue employee wages for period of September 16th throughSeptember 30th September 30: Total September bakery sales are$20,000. $6,000 of these sales are on accounts receivable. Step SixData (Click on the link to return to the prompt.) On September 30,the following adjustments must be made: ï· [Note: This is a sample.]Depreciation of baking equipment transferred to company on 7/13.Assume a half month of depreciation in July using the straight-linemethod. ï· Accrue interest for note payable. Assume a full month ofinterest for July. (6% annual interest on $10,000 loan fromparents.) ï· Record insurance used for the year. ï· Actual bakingsupplies on-hand as of September 30 are $1,100. ï· Office supplieson-hand as of September 30 are $50. Wage calculation data: 9 MonthHours Rate Pay 31 Jul. 10 12 120 15 Aug. 40 12 480 31 Aug. 35 12420 15 Sep. 38 12 456 30 Sep. 40 12 480
PEYTON APPROVED
General Journal for the period from July, 1 to September, 30
Date
Account Title
Debit
Credit
July, 1
Cash
$10,000
Common Stock
$10,000
July, 1
Baking Supplies
$6,500
Accounts Payable
$6,500
July, 3
Cash
$10,000
6% Note Payable
$10,000
July, 7
Prepaid Rent
$1,500
Cash
$1,500
July, 10
Licensing fee
$375
Cash
$375
July, 11
Miscellaneous Expense
$250
Cash
$250
July, 13
Baking Equipment
$6,000
Common Stock
$6,000
July, 13
Advertising expense
$200
Cash
$200
July, 14
Office Supplies
$300
Cash
$300
July, 30
Telephone expense
$75
Accounts Payable
$75
July, 31
Prepaid Insurance
$2,400
Cash
$2,400
July, 31
Salaries expense
$120
Salaries payable
$120
July, 31
Cash
$10,000
Accounts Receivable
$5,000
Sales
$15,000
Aug, 5
Salaries payable
$120
Cash
$120
Aug, 8
Cash
$3,800
Accounts Receivable
$3,800
Aug,10
Accounts Payable
$75
Cash
$75
Aug,15
Baking Supplies
$5,000
Accounts Payable
$5,000
Aug,15
Salaries expense
$480
Salaries payable
$480
Aug,15
Rent Expense
$1,500
Cash
$1,500
Aug,18
Cash
$3,000
Accounts Receivable
$3,000
Aug,20
Accounts Payable
$8,500
Cash
$8,500
Aug,20
Salaries payable
$480
Cash
$480
Aug,22
Office Supplies
$300
Cash
$300
Aug,31
Telephone expense
$75
Accounts Payable
$75
Aug,31
Salaries expense
$420
Salaries payable
$420
Aug,31
Cash
$12,500
Accounts Receivable
$7,500
Sales
$20,000
Sept, 1
Dividend
$10,000
Cash
$10,000
Sept, 5
Salaries payable
$420
Cash
$420
Sept, 8
Cash
$4,000
Accounts Receivable
$4,000
Sept,10
Accounts Payable
$75
Cash
$75
Sept,11
Baking Supplies
$7,000
Accounts Payable
$7,000
Sept,13
Accounts Payable
$5,000
Cash
$5,000
Sept,15
Salaries expense
$456
Salaries payable
$456
Sept,15
Rent Expense
$1,500
Cash
$1,500
Sept,20
Salaries payable
$456
Cash
$456
Sept,30
Salaries expense
$480
Salaries payable
$480
Sept,30
Cash
$14,000
Accounts Receivable
$6,000
Sales
$20,000
Unadjusted Trial Balance
Adjusting Entries
Adjusted Trial Balance
Account
Debit
Credit
Debit
Credit
Debit
Credit
Cash
25,356.75
25,356.75
Baking Supplies
18,500.00
17,400.00
1,100.00
Merchandise Inventory
175.45
175.45
Prepaid Rent
1,500.00
1,500.00
Prepaid Insurance
2,400.00
400.00
2,000.00
Baking Equipment
6,000.00
6,000.00
Misc. Supplies
600.00
550.00
50.00
Accounts Receivable
7,700.00
7,700.00
Notes Payable
10,000.00
10,000.00
Accounts Payable
2,000.00
2,000.00
Wages Payable
480.00
480.00
Common Stock
16,000.00
16,000.00
Dividends
10,000.00
10,000.00
Bakery Sales
55,000.00
55,000.00
Merchandise sales
221.00
221.00
Baking Supplies Expense
17,400.00
17,400.00
Rent Expense
4,500.00
4,500.00
Insurance Expense
400.00
400.00
Misc. Expense
250.00
250.00
Business License Expense
375.00
375.00
Advertising Expense
200.00
200.00
Wages Expense
1,836.00
1,836.00
Telephone Expense
150.00
150.00
COGS
157.80
157.80
Depreciation Expense
250.00
250.00
Accumulated Depreciation
250.00
250.00
Interest Expense
150.00
150.00
Interest Payable
150.00
150.00
Misc. Supplies Expense
550.00
550.00
Total
81,701.00
81,701.00
18,750.00
18,750.00
82,101.00
82,101.00
Need help with 8-11
Create financial statements by properly employing prescribedmethods in accordance with generally accepted accountingprinciples: A. Step Eight: Prepare the financial statements. Notethat you must use your adjusted trial balance to prepare the incomestatement, statement of ownerâs equity, and balance sheet. You mustcomplete these statements in this order, as there areinterdependencies among them. B. Step Nine: Complete the âClosingEntriesâ tab in your workbook by closing all temporary incomestatement amounts to create closing entries. C. Step Ten: Preparethe âPost Closing Trial Balanceâ tab for the next accountingperiod. [ACC-201-03] D. Step Eleven: Prepare the reversing entriesin the âReversing Entriesâ tab of your workbook.
Here is all of the info to go along with it:
July 1: You take $10,000 from your personal savings account andbuy common stock in Peyton Approved. July 1: Purchase $6,500 inbaking supplies from vendor, on account. July 3: Your parents lendthe company $10,000 cash in exchange for a two-year, 6% notepayable. Interest and the principal are repayable at maturity. July7: Enter into a lease agreement for bakery space. The agreement isfor 1 year. The rent is $1,500 per month, and the last monthâs rentpayment of $1,500 is required at time of lease agreement. Thepayment was made in cash. Lease period is effective July 1, 2018,through June 30, 2019. July 10: Pay $375 to the county for abusiness license. July 11: Purchase a cash register for $250(deemed to be not material enough to qualify as depreciableequipmentâuse misc. exp.). July 13: You have baking equipment,including an oven and mixer, which you have been using for yourhome-based business and will now start using in the bakery. Youestimate that the equipment is currently worth $6,000, and youtransfer the equipment into the business in exchange for additionalcommon stock. The equipment has a 5-year useful life. July 13: Pay$200 for business cards/flyers/posters/ads to use for advertising.July 14: Pay $300 for office supplies. July 15: Hire part-timehelper to be paid $12 per hour. Pay periods are the 1st through the15th and 16th through the end of the month, with paydays being the20th for the first pay period and the 5th of the following monthfor the second pay period. (No entry is required on this date; itis here for informational purposes only.) July 30: Receivedtelephone bill for July in amount of $75. Payment is due on August10. 6 July 31: Pay $2,400 for a 12-month insurance policy. Policyeffective dates are August 1, 2018, through July 31, 2019. July 31:Accrue wages earned for employee for period of 16th through 31st ofJuly (Wage calculations table provided below). July 31: Total Julybakery sales were $15,000. $5,000 of these sales are on accountsreceivable. Step Two Data (Click on the link to return to theprompt.) The following events occur in August, 2018: August 5: Paidemployee for period ending 7/31. August 8: Receive payments fromcustomers towards accounts receivable in amount of $3,800. August10: Paid July telephone bill. August 15: Purchase additional bakingsupplies in amount of $5,000 from vendor, on account. August 15:Accrue wages earned for employee from period of 1st through 15th ofAugust (Wage calculations table provided below). August 15: Payrent on bakery space. August 18: Receive payments from customerstowards accounts receivable in amount of $3,000. August 20: Paid$8,500 toward baking supplies vendor payable. August 20: Payemployee for period ending 8/15. August 22: $300 in office suppliespurchased. August 31: Received telephone bill for August in amountof $75. Payment is due on September 10. 7 August 31: Accrue wagesearned for employee for period of August 16th through August 31st(Wage calculations table provided below). August 31: August bakerysales total $20,000. $7,500 of this total is on accountsreceivable. Step Three (Click on the link to return to the prompt.)Updated Scenario: Many customers have been asking for morehypoallergenic products, so in September you start carrying a lineof hypoallergenic shampoos on a trial basis. The followinginformation relates to the purchase and sales of the shampoo: ï· Youuse the perpetual inventory method. Although you could use thefollowing valuation methodsâFIFO, LIFO, or weighted average, youchoose to use the FIFO method. Data: The following events occur inSeptember, 2018: September 1: Paid dividends to self in amount of$10,000. September 5: Pay employee for period ending 8/31.September 7: Purchase merchandise for resale. See âInventoryValuationâ tab for details. September 8: Receive payments fromcustomers toward accounts receivable in amount of $4,000. September10: Pay August telephone bill. September 11: Purchase bakingsupplies in amount of $7,000 from vendor on account. September 13:Paid on supplies vendor account in amount of $5,000. September 15:Accrue employee wages for period of September 1 through September15. September 15: Pay rent on bakery space: $1,500. 8 September 15:Record merchandise sales transaction. See âInventory Valuationâ tabfor details. September 15: Record impact of sales transaction onCOGS and the inventory asset. See âInventory Valuationâ tab fordetails. September 20: Pay employee for period ending 9/15.September 20: Purchase merchandise inventory for resale tocustomers. See âInventory Valuationâ tab for details. September 24:Record sales of merchandise to customers. See âInventory Valuationâtab for details. September 24: Record impact of sales transactionon COGS and the inventory asset. See âInventory Valuationâ tab fordetails. September 30: Purchase merchandise inventory for resale tocustomers. See âInventory Valuationâ tab for details. September 30:Accrue employee wages for period of September 16th throughSeptember 30th September 30: Total September bakery sales are$20,000. $6,000 of these sales are on accounts receivable. Step SixData (Click on the link to return to the prompt.) On September 30,the following adjustments must be made: ï· [Note: This is a sample.]Depreciation of baking equipment transferred to company on 7/13.Assume a half month of depreciation in July using the straight-linemethod. ï· Accrue interest for note payable. Assume a full month ofinterest for July. (6% annual interest on $10,000 loan fromparents.) ï· Record insurance used for the year. ï· Actual bakingsupplies on-hand as of September 30 are $1,100. ï· Office supplieson-hand as of September 30 are $50. Wage calculation data: 9 MonthHours Rate Pay 31 Jul. 10 12 120 15 Aug. 40 12 480 31 Aug. 35 12420 15 Sep. 38 12 456 30 Sep. 40 12 480
PEYTON APPROVED | |||
General Journal for the period from July, 1 to September, 30 | |||
Date | Account Title | Debit | Credit |
July, 1 | Cash | $10,000 | |
Common Stock | $10,000 | ||
July, 1 | Baking Supplies | $6,500 | |
Accounts Payable | $6,500 | ||
July, 3 | Cash | $10,000 | |
6% Note Payable | $10,000 | ||
July, 7 | Prepaid Rent | $1,500 | |
Cash | $1,500 | ||
July, 10 | Licensing fee | $375 | |
Cash | $375 | ||
July, 11 | Miscellaneous Expense | $250 | |
Cash | $250 | ||
July, 13 | Baking Equipment | $6,000 | |
Common Stock | $6,000 | ||
July, 13 | Advertising expense | $200 | |
Cash | $200 | ||
July, 14 | Office Supplies | $300 | |
Cash | $300 | ||
July, 30 | Telephone expense | $75 | |
Accounts Payable | $75 | ||
July, 31 | Prepaid Insurance | $2,400 | |
Cash | $2,400 | ||
July, 31 | Salaries expense | $120 | |
Salaries payable | $120 | ||
July, 31 | Cash | $10,000 | |
Accounts Receivable | $5,000 | ||
Sales | $15,000 | ||
Aug, 5 | Salaries payable | $120 | |
Cash | $120 | ||
Aug, 8 | Cash | $3,800 | |
Accounts Receivable | $3,800 | ||
Aug,10 | Accounts Payable | $75 | |
Cash | $75 | ||
Aug,15 | Baking Supplies | $5,000 | |
Accounts Payable | $5,000 | ||
Aug,15 | Salaries expense | $480 | |
Salaries payable | $480 | ||
Aug,15 | Rent Expense | $1,500 | |
Cash | $1,500 | ||
Aug,18 | Cash | $3,000 | |
Accounts Receivable | $3,000 | ||
Aug,20 | Accounts Payable | $8,500 | |
Cash | $8,500 | ||
Aug,20 | Salaries payable | $480 | |
Cash | $480 | ||
Aug,22 | Office Supplies | $300 | |
Cash | $300 | ||
Aug,31 | Telephone expense | $75 | |
Accounts Payable | $75 | ||
Aug,31 | Salaries expense | $420 | |
Salaries payable | $420 | ||
Aug,31 | Cash | $12,500 | |
Accounts Receivable | $7,500 | ||
Sales | $20,000 | ||
Sept, 1 | Dividend | $10,000 | |
Cash | $10,000 | ||
Sept, 5 | Salaries payable | $420 | |
Cash | $420 | ||
Sept, 8 | Cash | $4,000 | |
Accounts Receivable | $4,000 | ||
Sept,10 | Accounts Payable | $75 | |
Cash | $75 | ||
Sept,11 | Baking Supplies | $7,000 | |
Accounts Payable | $7,000 | ||
Sept,13 | Accounts Payable | $5,000 | |
Cash | $5,000 | ||
Sept,15 | Salaries expense | $456 | |
Salaries payable | $456 | ||
Sept,15 | Rent Expense | $1,500 | |
Cash | $1,500 | ||
Sept,20 | Salaries payable | $456 | |
Cash | $456 | ||
Sept,30 | Salaries expense | $480 | |
Salaries payable | $480 | ||
Sept,30 | Cash | $14,000 | |
Accounts Receivable | $6,000 | ||
Sales | $20,000 |
Unadjusted Trial Balance | Adjusting Entries | Adjusted Trial Balance | ||||
Account | Debit | Credit | Debit | Credit | Debit | Credit |
Cash | 25,356.75 | 25,356.75 | ||||
Baking Supplies | 18,500.00 | 17,400.00 | 1,100.00 | |||
Merchandise Inventory | 175.45 | 175.45 | ||||
Prepaid Rent | 1,500.00 | 1,500.00 | ||||
Prepaid Insurance | 2,400.00 | 400.00 | 2,000.00 | |||
Baking Equipment | 6,000.00 | 6,000.00 | ||||
Misc. Supplies | 600.00 | 550.00 | 50.00 | |||
Accounts Receivable | 7,700.00 | 7,700.00 | ||||
Notes Payable | 10,000.00 | 10,000.00 | ||||
Accounts Payable | 2,000.00 | 2,000.00 | ||||
Wages Payable | 480.00 | 480.00 | ||||
Common Stock | 16,000.00 | 16,000.00 | ||||
Dividends | 10,000.00 | 10,000.00 | ||||
Bakery Sales | 55,000.00 | 55,000.00 | ||||
Merchandise sales | 221.00 | 221.00 | ||||
Baking Supplies Expense | 17,400.00 | 17,400.00 | ||||
Rent Expense | 4,500.00 | 4,500.00 | ||||
Insurance Expense | 400.00 | 400.00 | ||||
Misc. Expense | 250.00 | 250.00 | ||||
Business License Expense | 375.00 | 375.00 | ||||
Advertising Expense | 200.00 | 200.00 | ||||
Wages Expense | 1,836.00 | 1,836.00 | ||||
Telephone Expense | 150.00 | 150.00 | ||||
COGS | 157.80 | 157.80 | ||||
Depreciation Expense | 250.00 | 250.00 | ||||
Accumulated Depreciation | 250.00 | 250.00 | ||||
Interest Expense | 150.00 | 150.00 | ||||
Interest Payable | 150.00 | 150.00 | ||||
Misc. Supplies Expense | 550.00 | 550.00 | ||||
Total | 81,701.00 | 81,701.00 | 18,750.00 | 18,750.00 | 82,101.00 | 82,101.00 |