1) Instruction 8 on the instruction page, can you check my answers in the "Inventory Valuation Tab"? I don't I did this correctly.

2) How do I enter the results in the "T-Accounts" tab?

3) In the "Trial Balance" tab is the first example of cash debit of 87,692.15 the figure already in there is way off from my figures. Is this something that was inserted just for sample purpose?

Final Project Peyton Approved Data You will prepare financial statements that will allow you to assess how profitable the business is. Below you will find the data required to make entries in your accounting workbook. Remember that you are following the business transactions for a six-month period from the initial stage of analysis and recording, through the reporting process. These transactions will include: the initial setup of the business sales purchases making payments to vendors paying store employees managing debt It will help you to print this document as you are making your entries in your workbook. Your textbook prepares you and can be used as a reference to assist you in completing this assignment. You should begin this project in Module Two. Step 1: Complete the following in the \"July Journal Entries\" in your workbook (be sure to look for the July Journal Entries tab at the bottom of the Peyton Approved Student Workbook). The following events occur in July 2014: July 1 - Open a bank account for Peyton Approved.This has been done for you in the July Journal Entries tab. July 1 - You take $15,000 from your personal savings account and buy common stock in Peyton Approved. This has been done for you in the July Journal Entries tab. July 3 - Your parents lend the company $10,000 cash, in exchange for a two-year, 6% note payable. Interest and the principal are repayable at maturity. July 7 - Sign a lease agreement for retail/bakery space. The agreement is for 1 year, with the option to extend the lease on a month-to-month basis after 1 year. The rent is $1,500 per month. The lease period starts on July 15, first and last month's rent due at that time. Subsequent rents are due on the 15 th day of each month. July 10 - Pay $375 to the county for a business license. July 11 - Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipmentuse misc. exp.). July 13 - You have baking equipment, including an oven and mixer, that you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $5,000, and you transfer the equipment into the business in exchange for additional common 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 $1,000 for baking ingredients (use baking supplies account). July 14 - Pay $300 for miscellaneous (use misc. supplies). July 15 - Hire part-time helper to be paid $12 per hour. Pay periods are the 1st through the 15th and 16th through the end of the month with paydays being the 20 th for the first pay period and the 5 th of the following month for the second pay period. July 15 - Pay first and last month's rent. July 16 - Open the doors of the bakery. July 31 - Pay $1,200 for a 12-month insurance policy. Step 2: Enter the Bakery Sales totals (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the August Journal Entries tab. The following events occur during the next 6 months: Bakery sales are recorded on the last day of the month. The following sales occurred: July - $5,000 August - $20,000 (cell B28) September - $22,500 October - $27,000 November - $25,000 December- $30,000 Step 3: Enter the baking supply purchases (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the September Journal Entries Tab. The following baking supplies purchases are made on credit: August 8 - $8,500, net 30 - paid 8/30 September 10 - $9,000, net 30 - paid 10/1 (cell B10) October 12 - $10,000, net 30 - paid 11/1 November 10 - $10,000, net 30 - paid 12/1 December 4 - $12,000, net 30 - paid 1/2 Step 4: Enter the miscellaneous supplies purchased (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the October Journal Entries Tab. The following misc. supplies were purchased: August 25 - $300 September 19 - $325 October 14 - $310 (cell B19) November 11 - $300 December 8 - $300 Step 5: Enter payroll (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the November Journal Entries Tab. Through December 31, the part-time employee worked the following hours: (ignore payroll taxes) (see table to right) Step 6: Enter the following monthly bills received and paid (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the December Journal Entries tab (sample in cells B22, B28, and B57). The following monthly bills are received and paid (July-December) Rent - paid each 15th - $1,500 Phone - received on the 30th of each month, paid on the following 10 th - $45 Step 7: You pay yourself via the issuance of dividends. Enter the dividends (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the September Journal Entries tab. The following dividends were paid and issued: 9/30 - 2,000 (Cell B32) 10/30 - 2,500 11/30 - 2,500 12/31 - 2,500 Step 8: Many customers have been asking for more hypo-allergenic products, so in November you start carrying a line of hypo-allergenic shampoos on a trial basis. The following information relates to the purchase and sales of the shampoo: You use the perpetual inventory method. You are uncertain as to which valuation method to useFIFO, LIFO, or weighted average, so you calculate inventory using all three and then decide which one you would like to choose. You will use the \"Inventory Valuation\" tab in your workbook to complete the following entries. See samples for November for FIFO, LIFO, and the Weighted Average (wt. avg). Purchases 11/7: 10 bottles purchased at $6 11/20: 20 bottles purchased at $6.10 12/1: 25 bottles purchased at $6.05 12/14: 30 bottles purchased at $6.00 12/26: 20 bottles purchases at $6.08 Sales - selling price, $8.50 a bottle 11/15: 8 bottles 11/30: 18 bottles 12/15: 22 bottles 12/24: 24 bottles Step 9: You will use the \"Adjusting Entries\" tab in your workbook to complete the following entries. See sample for Depreciation of Baking Equipment. On December 31, the following adjustments must be made: Depreciation of baking equipment transferred to company on 7/13. Assume month of depreciation in July using the straight-line method. (Cell B6) Accrue interest for note payable (Assume a full month of interest for July). Record insurance used for the year. An inventory of baking supplies shows $1,100 of supplies are remaining. An inventory of misc. supplies shows $50 remaining. Congratulations, you have now completed Section 1 (all) and parts a & b of Section 2 of the Final Project Part I. Now you will work on your trial balance sheet, balance sheet, and financial statements. The information is below as well: Step 10: You will use the \"T-Accounts\" tab in your workbook to complete the following. See sample in row 3. Complete the rest on your own. Accumulate the numbers in your t-accounts using the T-Accounts tab in your workbook. Step 11: You will use the \"Trial balance\" tab in your workbook to complete the following. See sample in row 7. Complete the rest on your own. See Exhibit 3-7 on page 62 for more information and use those to guide you through the following steps. Using the account balances from your t-accounts, accurately prepare unadjusted trial balance. Step 12 Continue using the \"Trial balance\" tab in your workbook to complete the following. See sample in row 7. Complete the rest on your own. See Exhibit 3-7 on page 62 for more information. Interpret trial balance and make appropriate end-of-period adjustments. Step 13 You will use the \"Adjusting Entries\" tab in your workbook to complete the following. See Exhibit 3-7 on page 62 for more information. Post adjusted entries and prepare the adjusted trial balance. Step 14 You will use the \"Income Statement,\" \"Balance Sheet,\" and \"Statement of Retained Earnings\" tabs in your workbook to do the following: Apply adjusted trial balance and prepare financial statements. Step 15 You will use the \"Closing Entries\" tab in your workbook to do the following: Close all temporary income statement accounts and create closing entries. Step 16 You will use the \"Trial Balance\" tab in your workbook to do the following: Prepare the post-closing trial balance for the next accounting period. Step 17 You will use the \"Reversing Entries\" tab in your workbook to do the following: Prepare reversing entries. Step 18 Almost there! Finally, after you have completed your workbook, address the following written sections in a separate document and submit along with your workbook. Discuss the financial statements. Determine the purpose of each statement. What does each financial statement tell you as a business owner? What decisions/changes in operations will you make based on the results reported in your statements? Month Hours 31-Jul 15-Aug 31-Aug 15-Sep 30-Sep 15-Oct 31-Oct 15-Nov 30-Nov 15-Dec 31-Dec Rate 10 40 35 38 40 37 40 35 30 45 40 Pay 12 12 12 12 12 12 12 12 12 12 12 120 480 420 456 480 444 480 420 Cell B29 360 Cell B55 540 480 Peyton Approved General Journal Entries Jul-14 Date Accounts Debit 1 Cash 15,000.00 Common Stock To Record Sale of Common Stock 3 Cash 10,000.00 Note Payable Cash in exchanged for 6% note due and payable in 2 yrs. Record to accrue interest expense. 10 Business License Expense 375.00 Cash Paid county business license 11 Misc. Expense 250.00 Cash Purchased cash register 13 Baking Equipment 5,000.00 Common Stock Contribution in exchange for common stock 13 Advertising 200.00 Cash 14 Baking Supplies 1,000.00 Cash 14 Misc. Supplies 300.00 Cash 15 Rent Expense 1,500.00 Cash First month's rent 15 Prepaid Rent 1,500.00 Cash Last month's rent to record to rent expense 30 Telephone Expense 45.00 accounts payable 31 Salary and wages expense 120.00 Salary and wages payable To accrue to salaries expense 31 Prepaid Insurance 1,200.00 Cash To record to insurance expense 31 Cash 5,000.00 Bakery Sales Complete the following in the \"July Journal Entries\" The following events occur in July 2014: Credit 15,000.00 10,000.00 375.00 250.00 5,000.00 200.00 1,000.00 300.00 1,500.00 1,500.00 45.00 120.00 1,200.00 5,000.00 7/1 7/1 7/3 7/7 7/10 7/11 7/13 7/13 7/14 7/14 7/15 7/15 7/16 7/31 Open a bank account for Peyton Approved. This has been done for you You take $15,000 from your personal savings account and buy common stock in Peyton Approved. This has been done for you Your parents lend the company $10,000 cash, in exchange for a two-year, 6% note payable. Interest and the principal are repayable at maturity. Sign a lease agreement for retail/bakery space. The agreement is for 1 year, with the option to extend the lease on a month-to-month basis after 1 year. The rent is $1,500 per month. The lease period starts on July 15, first and last month's rent due at that time. Subsequent rents are due on the 15th day of each month. Pay $375 to the county for a business license. Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipmentuse misc. exp.). You have baking equipment, including an oven and mixer, that you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $5,000, and you transfer the equipment into the business in exchange for additional common stock. The equipment has a 5-year useful life. Pay $200 for business cards/flyers/posters/ads to use for advertising. Pay $1,000 for baking ingredients (use baking supplies account). Pay $300 for miscellaneous (use misc. supplies). Hire part-time helper to be paid $12 per hour. Pay periods are the 1st through the 15th and 16th through the end of the month with paydays being the 20th for the first pay period and the 5th of the following month for the second pay period. Pay first and last month's rent. Open the doors of the bakery. Pay $1,200 for a 12-month insurance policy. Peyton Approved General Journal Entries Aug-14 Date Accounts 8 Bakery Supplies accounts payable 10 Accounts Payable Cash Previous month's phone bill 15 Salary and wages expense Salary and wages payable 15 Rent Expense Cash 25 misc. supplies cash 30 Telephone Expense accounts payable 30 Accounts Payable cash Paid bakery supplies 30 cash Bakery Sales 31 Salary and wages expense Salary and wages payable Debit 8,500.00 Credit 8,500.00 45.00 45.00 480.00 480.00 1,500.00 1,500.00 300.00 300.00 45.00 45.00 8,500.00 8,500.00 20,000.00 20,000.00 420.00 420.00 Peyton Approved General Journal Entries Sep-14 Date Accounts 10 Accounts Payable Cash Previous month's phone bill 10 Baking Supplies accounts payable 15 Rent Expense Cash 15 Salary and wages expense Salary and wages payable 19 misc. supplies cash 30 Telephone Expense accounts payable 30 Salary and wages expense Salary and wages payable 30 Dividends Cash 30 Cash Bakery Sales Debit 45.00 Credit 45.00 9,000.00 9,000.00 1,500.00 1,500.00 456.00 456.00 325.00 325.00 45.00 45.00 480.00 480.00 2,000.00 2,000.00 22,500.00 22,500.00 Peyton Approved General Journal Entries Oct-14 Date Accounts 1 Accounts Payable cash Paid bakery supplies 10 Accounts Payable Cash Previous month's phone bill 12 Bakery Supplies Accounts Payable 14 misc. supplies cash 15 Salary and wages expense Salary and wages payable 15 Rent Expense Cash 30 Telephone Expense accounts payable 30 Dividends Cash 31 Cash Bakery Sales 31 Salary and wages expense Salary and wages payable Debit 9,000.00 Credit 9,000.00 45.00 45.00 10,000.00 10,000.00 310.00 310.00 444.00 444.00 1,500.00 1,500.00 45.00 45.00 2,500.00 2,500.00 27,000.00 27,000.00 480.00 480.00 Peyton Approved General Journal Entries Nov-14 Date Accounts 1 Accounts Payable cash Paid bakery supplies 10 Bakery Supplies Accounts Payable 10 Accounts Payable Cash Previous month's phone bill 11 misc. supplies cash 15 Salary and wages expense salary and wages payable 15 Rent Expense Cash 30 Salary and wages expense salary and wages payable 30 Telephone Expense accounts payable 30 Dividends Cash 30 Cash Bakery Sales Debit 10,000.00 Credit 10,000.00 10,000.00 10,000.00 45.00 45.00 300.00 300.00 420.00 420.00 1,500.00 1,500.00 360.00 360.00 45.00 45.00 2,500.00 2,500.00 25,000.00 25,000.00 Peyton Approved General Journal Entries Dec-14 Date Accounts 1 Accounts Payable cash Paid bakery supplies 4 Bakery Supplies Accounts Payable 8 misc. supplies cash 10 Accounts Payable Cash Previous month's phone bill 15 Rent Expense Cash 15 Salary and wages expense Salary and wages payable 30 Telephone Expense accounts payable 31 Depreciation Expense - Baking Equipment Accumulated Depreciation - Baking Equipment 31 Cash Bakery Sales 31 Salary and wages expense Salary and wages payable 31 Dividends Cash Debit 10,000.00 Credit 10,000.00 12,000.00 12,000.00 300.00 300.00 45.00 45.00 1,500.00 1,500.00 540.00 540.00 45.00 45.00 500.00 500.00 30,000.00 30,000.00 480.00 480.00 2,500.00 2,500.00 Peyton Approved Adjusting Journal Entries 2014 Date Accounts 31-Dec Depreciation Expense accumulated depreciation 31-Dec Insurance Expense Prepaid Insurance To adjust insurance expense 31-Dec Baking supplies expense Baking supplies expense To adjust baking supplies expense 31-Dec Miscellaneous supplies expense Miscellaneous supplies To adjust miscellaneous supplies 31-Dec Interest Expense Interest Payable Debit Credit 500 500.00 1,200.00 1,200.00 1,100.00 1,100.00 50.00 50.00 150.00 150.00 Account Cash Accounts Receivable Equipment Common stock Notes payable Business Liscense Miscellaneous expense Advertising Exp Baking Supplies Miscellaneous supplies Prepaid insurance Salaries Expense Rent expense Salaries payable Sales Revenue Telephone expense Account payable Dividend payable Merchandise inventory Cost of goods sold Dividends Baking Supplies expense Mis. Supplies expense Depreciation expense Accumulated Depreciation Insurance expense Interest expense Interest payable Total Peyton Approved Trial Balance 2014 Unadjusted trial balance Debit Credit 87,692.15 - Adjusting entries Debit Credit Adjusted trial balance Debit Credit 87,692.15 Peyton Approved Balance Sheet For the Period Ended December 31, 2014 Assets Current assets Cash Account Receivable Merchandise inventory Baking supplies Miscellaneous supplies Prepaid insurance Total Current assets Fixed Assets Equipment Less: Accumulated Depreciation Business Liscense Total Fixed assets Liabilities and Owners' Equity Current Liabilities Account payable Salaries payable Interest payable Total current liabilities Non-current liability Note payable Total Liabilities Total Assets Total Liabilities and equity Owner Equity Common Stock Retained Earnings Total owner equity Peyton Approved Income Statement For the Year Ended 12/31/2014 Sales Revenue Less: Cost of goods sold Gross Profit Less: Expenses Miscellanepus supplies expense Baking supplies expense Rent expense Salary expense Insurance expense Depreciation expense Telephone expense Miscellanepus expense Advertising expense Interest expense Total expenses Net Income Peyton Approved Statement of Retained Earnings For the Year Ended 12/31/2014 Retained Earnings beginning bal Add: Net Income Less: Dividends Retained Earnings ending bal Peyton Approved Closing Entries 2014 Date Accounts Debit Credit Peyton Approved Post Closing Trial Balance 2014 Account Cash Accounts Receivable Equipment Common stock Notes Payable Business Liscense Prepaid insurance Account payable Dividend payable Merchandise inventory Accumulated Depreciation Interest payable Retained Earmings Salaries payable Baking supplies Miscellaneous supplies Total Unadjusted Trial Balance Debit Credit Peyton Approved Reversing Entries 2014 Date Accounts Debit Credit date 1-Jul 3-Jul 31-Jul 30-Aug 30-Sep 31-Oct 30-Nov 31-Dec Bal Cash 15,000.00 10,000.00 5,000.00 20,000.00 22,500.00 27,000.00 25,000.00 30,000.00 375.00 250.00 200.00 1,000.00 300.00 1,500.00 1,500.00 1,200.00 45.00 1,500.00 300.00 8,500.00 45.00 1,500.00 325.00 2,000.00 9,000.00 45.00 310.00 1,500.00 2,500.00 10,000.00 45.00 300.00 1,500.00 2,500.00 10,000.00 300.00 45.00 1,500.00 2,500.00 154,500.00 91,915.00 date 10-Jul 11-Jul 13-Jul 14-Jul 14-Jul 15-Jul 15-Jul 31-Jul 10-Aug 15-Aug 25-Aug 30-Aug 10-Sep 15-Sep 19-Sep 30-Sep 1-Oct 10-Oct 14-Oct 15-Oct 30-Oct 1-Nov 10-Nov 11-Nov 15-Nov 30-Nov 1-Dec 8-Dec 10-Dec 15-Dec 31-Dec Misc. expense 250 14-Jul 8-Aug 12-Oct 10-Nov 4-Dec Baking supplies 1,000 8500 10000 10000 12000 15-Jul Prepaid rent 1,500 30-Jul 30-Aug 30-Sep 30-Oct 30-Nov 30-Dec Notes Payable 10,000 date 3-Jul 10-Jul Business License exp 375 Insurance expense 1200 Common Stock 15,000 5,000 1-Jul 13-Jul 31-Jul 62,585.00 11-Jul 10-Aug 30-Aug 10-Sep 1-Oct 10-Oct 1-Nov 10-Nov 1-Dec 10-Dec date Accounts payable 45 45 8,500 8,500 45 45 9,000 45 45 10,000 10,000 45 45 10,000 10,000 45 45 12,000 45 Telephone expense 45 45 45 45 45 45 13-Jul 13-Jul Advertising expense 200 14-Jul 25-Aug 19-Sep 14-Oct 11-Nov 8-Dec Misc. supplies 300 300 325 310 300 300 15-Jul 15-Aug 15-Sep 15-Oct 15-Nov 15-Dec Rent expense 1,500 1500 1500 1500 1500 1500 31-Jul 30-Jul 8-Aug 30-Aug 30-Sep 12-Oct 30-Oct 10-Nov 30-Nov 4-Dec 30-Dec Baking equipment 5,000 Prepaid insurance 1,200 Bakery revenue 5,000 20,000 22,500 27,000 25,000 30,000 25,000 30,000 Salary and wages expense 31-Jul 120 15-Aug 450 31-Aug 420 15-Sep 456 30-Sep 480 15-Oct 444 31-Oct 480 15-Nov 420 30-Nov 360 15-Dec 540 31-Dec 480 31-Jul 30-Aug 30-Sep 31-Oct 30-Nov 31-Dec 30-Nov 31-Dec Salaries and wages payable 120 31-Jul 480 15-Jul 420 31-Aug 456 15-Sep 480 30-Sep 444 15-Oct 480 31-Oct 420 15-Nov 360 30-Nov 540 15-Dec 480 1-Dec 4,530 30-Aug 30-Oct 30-Nov 31-Dec Dividends 2,000 2,500 2,500 2,500 depreciation expense 500 acc dep Interest expense 31-Dec Interest payable 500 31-Dec 9,500 baking supplies expense adj adj misc supplies expense adj Merch. Inv. FIFO Merch. Inv. LIFO Merch. Inv. Weighted average COGS FIFO COGS LIFO COGS Weighted average adj Merchandise Sales Revenue Method chosen = Date Bottles Purchase FIFO 7-Nov 10 $6.00 Total $60.00 15-Nov 20-Nov Sales 8 20 $6.10 $6.00 Ending Inventory 10 $6.00 $48.00 $6.00 $12.00 $6.00 $6.10 $12.00 $122.00 $134.00 4 25 30 59 $6.10 $6.05 $6.00 $24.40 $151.25 $180.00 $355.65 2 16 $6.00 $6.10 15-Dec 4 18 $6.10 $24.40 6.05 $108.90 $133.30 7 30 37 $6.05 $6.00 $42.35 $180.00 $222.35 24-Dec 7 17 $6.05 $42.35 $6.00 $102.00 $144.35 13 20 33 $6.00 $6.08 $78.00 $121.60 $199.60 1-Dec 25 6.05 $151.25 14-Dec 30 $12.00 $97.60 $109.60 2 2 20 22 $122.00 30-Nov $60.00 6.00 $180.00 26-Dec Date LIFO 7 20 $6.08 121.6 Bottles Purchase 10 $6.00 Total $60.00 15-Nov 20-Nov Sales 8 20 $6.10 $6.00 Ending Inventory 10 $6.00 $48.00 18 $6.10 $109.80 2 $6.00 $12.00 2 20 22 $122.00 30-Nov $60.00 $6.00 $6.10 $12.00 $122.00 $134.00 2 2 4 $6.00 $6.10 $12.00 $12.20 $24.20 1-Dec 25 6.05 $151.25 4 25 29 $6.10 6.05 $24.40 $151.25 $175.65 14-Dec 30 6.00 $180.00 29 30 59 6.05 $6.00 $175.45 $180.00 $355.45 59 22 37 $6.00 $6.05 $354.00 $133.10 $487.10 37 24 13 6.05 $6.00 $223.85 $144.00 $367.85 13 20 33 $6.00 6.08 $78.00 $121.60 $199.60 15-Dec 22 24-Dec 26-Dec Date Wt. Avg 7 24 20 Bottles Purchase 10 $6.00 Total $60.00 $6.10 $48.00 6.05 $151.25 $6.10 $109.80 2 $6.00 2 20 22 18 25 $6.00 Ending Inventory 10 $6.00 $122.00 30-Nov 1-Dec Sales 8 20 $6.00 6.08 $121.60 15-Nov 20-Nov $6.05 $133.10 $6.00 $6.10 4 25 29 6.0909 $60.00 $12.00 $12.00 $122.00 $134.00 Per Unit 6.0909 $134.00