3. Financial Statements: Create financial statements using appropriate methods based on accepted accounting principles. Be sure to prepare these financial statements in the order listed, as there are important interdependencies among them. A. Income Statement: Prepare the income statement using the adjusted trial balance. B. Statement of Owner's Equity: Prepare the statement of owner's equity using the adjusted trial balance. C. Balance Sheet: Prepare the balance sheet using the adjusted trial balance. D. Closing Entries: Complete the Closing Entries tab of the company accounting workbook by closing all temporary income statement amounts to create closing entries. E. Post-Closing Trial Balance: Prepare the Post-Closing Trial Balance" tab of the company accounting workbook in preparation for the next accounting period. Asset Accounts Equity Accounts Acct # 201 Common Stock 202 Dividends 203 Cost of Goods Sold 204 Acct # 301 302 303 Liability Accounts Acct # 101 Notes Payable 102 Accounts Payable 103 Wages Payable 104 Interest Payable 105 106 107 108 Cash Baking Supplies Prepaid Rent Prepaid Insurance Baking Equipment Office Supplies Accounts Receivable Accumulated Depreciation Merchandise Inventory 109 Revenue Accounts Bakery Sales Merchandise Sales Acct # 401 402 Expense Accounts Baking Supplies Expense Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Interest Expense Depreciation Expense Office Supplies Expense Acct # 501 502 503 504 505 506 507 508 509 510 511 Chart of Accounts October Journal Entries November Journal Entries December Journal A Company Trial Balance 20xx Unadjusted trial balance Adjusting entries Debit Credit Debit 51,436.75 20,500.00 175.65 1,500.00 1,200.00 5,000.00 Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Office Supplies Accounts Receivable Notes Payable Interest Payable Accounts Payable Wages Payable Common Stock Dividends Bakery Sales Adjusted trial balance Credit Debit Credit 51,436.75 19,400.00 1,100.00 175.65 1,500.00 200.00 1,000.00 5,000.00 208.33 208.33 550.00 50.00 9,700.00 10,000.00 150.00 150.00 7,000.00 480.00 30,000.00 10,000.00 60,000.00 600.00 9,700.00 10,000.00 7,000.00 480.00 30,000.00 10,000.00 60,000.00 221.00 221.00 19,400.00 4,500.00 150.00 200.00 208.33 Merchandise Sales Baking Supplies Expense Rent Expense Interest Expense Insurance Expense Depreciation Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense COGS 250.00 19,400.00 4,500.00 150.00 200.00 208.33 250.00 550.00 375.00 200.00 1,956.00 150.00 157.60 550.00 375.00 200.00 1,956.00 150.00 157.60 Total: 107,701.00 107,701.00 20,508.33 20,508.33 108,059.33 108,059.33 3 1 A Company 2 Income Statement 3 For Qtr. Ending 12/31/20XX 4 5 Revenues 6 7 8 Total Revenues 9 10 Gross Profit 11 12 Operating Expenses: 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Total Operating Expenses: 31 32 Net Income 33 0 1 A Company 2. Statement of Stockholder's Equity 3 For Qtr. Ending 12/31/20xx 4 Common Stock Retained Earnings Total 5 Beginning Balances, September 30 0 0 6 Issued Common Stock 7 Net Income 8 Dividends 9 Ending Balances, December 31: 10 11 1 2 A Company Balance Sheet As of December 31, 20XX 3 4 5 Assets 6 Current Assets: Liabilities and Owners' Equity Current Liabilities: 7 8 9 10 Total Current Liabilities 11 12 Long Term Liabilities: 13 14 Total Current Assets Total Long Term Liabilities: 15 16 Total Liabilities: 17 18 19 Shareholder's Equity: 20 21 Non-Current Assets: 22 23 24 Baking Equipment (Net) 25 26 Total Assets: Total Equity Total Liabilities & Equity 27 28 29 Debit Credit 2 A Company 3 Closing Entries 4. Qtr ending 12/31/20xx 5 6 Date Accounts 7 31-Dec Bakery Sales 8 Merchandise Sales 9 Retained Earnings 10 11 31-Dec Retained Earnings 12 Baking Supplies Expense 13 Rent Expense 14 Wages Expense 15 Office Supplies Expense 16 Business License Expense 17 Office Expense 18 Depreciation Expense 19 Insurance Expense 20 Advertising Expense 21 Interest Expense 22 Telephone Expense COGS 23 24 25 26 31-Dec Retained Earnings Dividends 27 28 29 2 3 Post-Closing Trial Balance Qtr. Ending 12/31/20xx 3 4 Unadjusted Trial Balance Debit Credit 5 Account 6 Cash 7 Baking Supplies 8 Merchandise Inventory 9 Prepaid Rent 10 Prepaid Insurance 11 Baking Equipment 12 Accumulated Depreciation 13 Office Supplies 14 Accounts Receivable 15 Accounts Payable 16 Wages Payable 17 Interest Payable 18 Notes Payable 19 Common Stock 20 Retained Earnings 21 22 Total