1 Open a bank account for Peyton Approved 1 You take $15,000 from your personal savings account and buy common stock in Peyton Approved 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 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 1, 2019, first and last months rent due at that time Subsequent rents are due on the 15 th day of each month (no entry record this transaction on July 15 th , see below) 10 Pay $375 to the county for a business license 11 Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipmentuse misc exp ) 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 13 Pay $200 for business cards flyers posters ads to use for advertising 14 Pay $1,000 for baking ingredients (use baking supplies account) 14 Pay $300 for miscellaneous (use misc supplies) 15 Hire part time helper to be paid $12 per hour Pay periods are the 1 st through the 15 th and 16 th 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 15 Pay first and last months rent in cash (1,500 January rent January 2020 rent 1,500) 16 Open the doors of the bakery 31 Pay $1,200 for a 12 month insurance policy beginning February 1, 2019 31 Record sales $5,000 $2,500 paid in cash remainder paid later 31 Received telephone bill, $45, will pay on 8 5 accrue invoice The following events occur during the next 6 months August August 5 pay accrued telephone bill August 8 purchase Baking Supplies on credit $8,500 August 15 accrue Salary 40 hours 12 00 per hour will be paid on 8 20 August 15 customer paid $2,500 invoice from previous month August 15 Pay in cash August Rent $1,500 August 20 Pay employees for August 1 15 accrued on 8 15 August 25 purchase for cash $300 miscellaneous supplies August 31 st record August sales $20,000 paid to Peyton in cash August 20 th Record payment to employee August 31 st Accrue Salary 40 hours 12 per hour will be paid 9 5 August 31 st Record telephone bill for $45, to be paid on 9 10 September 2019 September 5 Record payment to employee wages accrued on 8 31 September 10 Record payment of telephone bill accrued 8 31 September 10 th Record purchase of baking supplies on credit, $9,000 September 15 th Record rent payment September 15 th Accrue w e 9 15 wages 38 hours 12 00 per hour September 15 th Record payment of baking supplies purchased on 8 8 September 19 th Record cash paid for miscellaneous supplies $325 September 20 th Record payment of employee wages accrued on 9 15 September 30 th Record telephone bill received $45, not paid until 10 5 September 30 th Record sales $27,000 from customers paid to Peyton in cash September 30 th Accrue w e 9 30 wages 40 hours 12 hr (pay to employees 10 5) October 2019 October 5 th Pay telephone bill accrued 9 30 October 10 th Pay employees wages accrued 9 30 October 12 th Purchase on credit $10,000 baking supplies October 11 th Record payment of baking supplies purchased on 9 10 October 14 th Record purchase of miscellaneous supplies $310 for cash October 15 th Accrue wages for w e 10 15 October 15 th Pay in cash rent for October October 20 th Pay employee wages accrued on 10 15 October 30 th Record bakery sales paid to Peyton in cash, $27,000 October 30 th Accrue wages 40 hours 12 00 hr October 30 th Record receipt of telephone bill, $45, not paid until 11 5 October 30 th Record dividend payment $4,500 November 2019 November 5 th Pay telephone bill accrue 10 30 November 10 th Pay employee wages accrued on 10 30 November 10 th Pay baking supplies purchased on credit 10 12 November 10 th Purchase baking supplies on credit $10,000 due next month November 15th Accrue wages for week ended 11 15 35 hours 12 00 per hour November 15 th Purchase for cash $300 miscellaneous supplies November 15 th Paid November rent, $1,500 in cash November 15 th Purchase 10 bottles (merchandise inventory) 6 00 each November 20 th Sold 8 bottles $8 50 (record transaction assuming FIFO) for cash November 20 th Purchase 20 bottles 6 05 each for cash November 20 th Pay employees accrued on 11 15 November 30 th Sold 18 bottles $8 50 each for cash November 30 th Record telephone bill $45, paid 12 5 November 30 th Accrue wages w e 11 30 30 hours 12 00 hour November 30 th Record November sales $25,000 received by Peyton in cash November 30 th Pay owner dividends in cash $2 500 December 2019 December 1 st Purchased 25 bottles $6 05 each for cash December 4 th Purchase on credit $12,000 baking supplies December 5 th Pay employees accrue wages 11 30 December 10 th Pay telephone bill accrued on 11 30 December 10 th Record payment of baking supplies purchased on 11 10 December 15 th Accrue employee wages 45 hours (straight time) 12 00 hour December 15 th Pay monthly rent in cash December 15 th purchase miscellaneous supplies for cash $300 December 15 th Purchase for cash 30 bottles 6 00 each December 15 th Sold 22 bottles $8 50 for cash ( use FIFO for inventory) December 20 th Purchase for cash 20 bottles $6 08 each December 20 th Pay employee wages accrued 12 15 December 30 th Sold 22 bottles 8$8 50 each (use FIFO) December 30 th Record telephone bill $45 (due and paid next month) December 30 th Record December bakery sales paid to Peyton in cash, $30,000 December 31 st Accrue employee wages for w e 12 31 40 hours 12 00 hour December 31 st Pay in cash $2,500 dividends to owner10 31 On December 31, the following adjustments must be made (use the adjusting entry tab to record transactions then transfer the entries to the trial balance adjusting entries column) Depreciation of baking equipment transferred to company on 7 13 Assume month of depreciation in July using the straight line method 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

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1 Open a bank account for Peyton Approved. 1 You take $15,000 from your personal savings account and buy common stock in Peyton Approved. 3

1 Open a bank account for Peyton Approved.

1 You take $15,000 from your personal savings account and buy common stock in Peyton Approved.

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.

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 1, 2019, first and last months rent due at that time. Subsequent rents are due on the 15^th day of each month. (no entry- record this transaction on July 15^th, see below)

10 Pay $375 to the county for a business license.

11 Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipmentuse misc. exp.).

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.

13 Pay $200 for business cards/flyers/posters/ads to use for advertising.

14 Pay $1,000 for baking ingredients (use baking supplies account).

14 Pay $300 for miscellaneous (use misc. supplies).

15 Hire part-time helper to be paid $12 per hour. Pay periods are the 1^st through the 15^th and 16^th 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.

15 Pay first and last months rent in cash. (1,500 January rent; January 2020 rent 1,500)

16 Open the doors of the bakery.

31 Pay $1,200 for a 12-month insurance policy beginning February 1, 2019

31- Record sales $5,000; $2,500 paid in cash remainder paid later

31- Received telephone bill, $45, will pay on 8/5 accrue invoice

The following events occur during the next 6 months:

August

August 5 pay accrued telephone bill
August 8 purchase Baking Supplies on credit $8,500
August 15 accrue Salary 40 hours @ 12.00/per hour will be paid on 8/20
August 15 customer paid $2,500 invoice from previous month
August 15 - Pay in cash August Rent $1,500
August 20 Pay employees for August 1-15 accrued on 8/15
August 25 purchase for cash $300 miscellaneous supplies
August 31^st record August sales $20,000 paid to Peyton in cash
August 20^th Record payment to employee
August 31^st Accrue Salary 40 hours @ 12/per hour will be paid 9/5
August 31^st Record telephone bill for $45, to be paid on 9/10

September 2019

September 5 Record payment to employee wages accrued on 8/31
September 10 Record payment of telephone bill accrued 8/31
September 10^th Record purchase of baking supplies on credit, $9,000
September 15^{th -} Record rent payment
September 15^th- Accrue w.e. 9/15 wages 38 hours @ 12.00/per hour
September 15^th Record payment of baking supplies purchased on 8/8
September 19^th Record cash paid for miscellaneous supplies $325
September 20^th Record payment of employee wages accrued on 9/15
September 30^th Record telephone bill received $45, not paid until 10/5
September 30^th - Record sales $27,000 from customers paid to Peyton in cash
September 30^th Accrue w.e. 9/30 wages 40 hours @ 12/hr (pay to employees 10/5)

October 2019

October 5^th Pay telephone bill accrued 9/30
October 10^th Pay employees wages accrued 9/30
October 12^th Purchase on credit $10,000 baking supplies
October 11^th- Record payment of baking supplies purchased on 9/10
October 14^th Record purchase of miscellaneous supplies $310 for cash
October 15^th Accrue wages for w.e. 10/15
October 15^th Pay in cash rent for October
October 20^th - Pay employee wages accrued on 10/15
October 30^th Record bakery sales paid to Peyton in cash, $27,000
October 30^th Accrue wages 40 hours @ 12.00/hr
October 30^th Record receipt of telephone bill, $45, not paid until 11/5
October 30^th Record dividend payment $4,500

November 2019

November 5^th Pay telephone bill accrue 10/30
November 10^th Pay employee wages accrued on 10/30
November 10^th Pay baking supplies purchased on credit 10/12
November 10^th - Purchase baking supplies on credit $10,000 due next month
November 15th Accrue wages for week ended 11/15 @ 35 hours 12.00/per hour
November 15^th Purchase for cash $300 miscellaneous supplies
November 15^th - Paid November rent, $1,500 in cash
November 15^th Purchase 10 bottles (merchandise inventory) @ 6.00 each
November 20^th Sold 8 bottles $8.50 (record transaction assuming FIFO) for cash
November 20^th Purchase 20 bottles @ 6.05 each for cash
November 20^th Pay employees accrued on 11/15
November 30^th Sold 18 bottles @ $8.50 each for cash
November 30^th Record telephone bill $45, paid 12/5
November 30^th Accrue wages w.e. 11/30 30 hours @ 12.00/hour
November 30^th - Record November sales $25,000 received by Peyton in cash
November 30^th Pay owner dividends in cash $2.500

December 2019

December 1^st Purchased 25 bottles @ $6.05 each for cash
December 4^th Purchase on credit $12,000 baking supplies
December 5^th Pay employees accrue wages 11/30
December 10^th Pay telephone bill accrued on 11/30
December 10^th - Record payment of baking supplies purchased on 11/10
December 15^th Accrue employee wages 45 hours (straight time) @12.00/hour
December 15^th Pay monthly rent in cash
December 15^th purchase miscellaneous supplies for cash $300
December 15^th Purchase for cash 30 bottles @ 6.00 each
December 15^th Sold 22 bottles @ $8.50 for cash ( use FIFO for inventory)
December 20^th Purchase for cash 20 bottles @ $6.08 each
December 20^th Pay employee wages accrued 12/15
December 30^th Sold 22 bottles @ 8$8.50 each (use FIFO)
December 30^th Record telephone bill $45 (due and paid next month)
December 30^th Record December bakery sales paid to Peyton in cash, $30,000
December 31^st Accrue employee wages for w.e. 12/31 @ 40 hours /12.00 hour
December 31^st - Pay in cash $2,500 dividends to owner10/31

On December 31, the following adjustments must be made: (use the adjusting entry tab to record transactions then transfer the entries to the trial balance adjusting entries column)

Depreciation of baking equipment transferred to company on 7/13. Assume month of depreciation in July using the straight-line method.
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.