A supplier shipped $3,000 of ingredients on 12 29 17 Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12 29 17 Goods were shipped FOB suppliers warehouse At 12 31 17, Peyton has $200 worth of merchandise on consignment at Brunos House of Bacon On 12 23 17, Peyton received $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January On 12 03 2017, a mixer with a cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift As of 12 23 17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction About later borrowing financials will show loan from parents repaid and use of bank financing And this is my adjusted trial balance with adjusting entries Unadjusted trial balance Adjusting entries Adjusted trial balance Dr Cr ref Dr Cr ref Dr Cr Cash 67,520 04 1,000 00 3 68,520 04 Accounts Receivable 68,519 91 68,519 91 Other Receivable Insurance 700 00 4 700 00 Baking Supplies 15,506 70 3,000 00 1 18,506 70 Merchandise Inventory 1,238 07 200 00 2 1,038 07 Consignment Inventory 200 00 2 200 00 Prepaid Rent 2,114 55 2,114 55 Prepaid Insurance 2,114 55 494 83 1,619 72 Misc Supplies 170 49 170 49 Baking Equipment 14,000 00 2,000 00 4 12,000 00 Accumulated Depreciation 1,606 44 1,200 00 4 406 44 Customer Deposit 1,000 00 3 1,000 00 Accounts Payable 20,262 11 3,175 00 1 23,437 11 Wages Payable 3,383 28 3,383 28 Interest Payable 211 46 211 46 Notes Payable 5,000 00 5,000 00 Common Stock 20,000 00 20,000 00 Beginning Retained earnings 50,144 84 50,144 84 Dividends 105,000 00 105,000 00 Bakery Sales 327,322 55 327,322 55 Merchandise Sales 1,205 64 1,205 64 Cost of Goods Sold Baked 105,834 29 105,834 29 Cost of Goods Sold Merchandise 859 77 859 77 Rent Expense 24,549 19

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Feb 01, 2019

A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all

A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped FOB supplier’s warehouse.

At 12/31/17, Peyton has $200 worth of merchandise on consignment at Bruno’s House of Bacon.

On 12/23/17, Peyton received $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January.

On 12/03/2017, a mixer with a cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction.

About later borrowing - financials will show loan from parents repaid and use of bank financing.

And this is my adjusted trial balance with adjusting entries.

	Unadjusted trial balance			Adjusting entries			Adjusted trial balance
	Dr	Cr	ref	Dr	Cr	ref	Dr	Cr
Cash	67,520.04			1,000.00		3	68,520.04
Accounts Receivable	68,519.91						68,519.91
Other Receivable - Insurance				700.00		4	700.00
Baking Supplies	15,506.70			3,000.00		1	18,506.70
Merchandise Inventory	1,238.07				200.00	2	1,038.07
Consignment Inventory				200.00		2	200.00
Prepaid Rent	2,114.55						2,114.55
Prepaid Insurance	2,114.55				494.83		1,619.72
Misc. Supplies	170.49						170.49
Baking Equipment	14,000.00				2,000.00	4	12,000.00
Accumulated Depreciation		1,606.44		1,200.00		4		406.44
Customer Deposit					1,000.00	3		1,000.00
Accounts Payable		20,262.11			3,175.00	1		23,437.11
Wages Payable		3,383.28						3,383.28
Interest Payable		211.46						211.46
Notes Payable		5,000.00						5,000.00
Common Stock		20,000.00						20,000.00
Beginning Retained earnings		50,144.84						50,144.84
Dividends	105,000.00						105,000.00
Bakery Sales		327,322.55						327,322.55
Merchandise Sales		1,205.64						1,205.64
Cost of Goods Sold - Baked	105,834.29						105,834.29
Cost of Goods Sold - Merchandise	859.77						859.77
Rent Expense	24,549.19						&