Accrual Basis: Apply the accrual basis of accounting and prepare adjusting entries to ensure accurate accounting for expenses that lack transactions in the current period.

1. Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the Trial Balance tab of the company accounting workbook, ensuring that the total debits and credits match.
2. Adjusting Entries: Prepare the Adjusting Entries tab of the company accounting workbook.
3. Adjusted Trial Balance: Prepare the adjusted trial balance on the Trial Balance tab, ensuring that the debit and credit totals match.

Date	General Journal	Debit	Credit
		$	$
Oct 1	Cash	25,000
	Common Stock		25,000
Oct 1	Baking Supplies	8,500
	Accounts Payable		8,500
Oct 3	Cash	10,000
	Notes Payable		10,000
Oct 7	Prepaid Rent	1,500
	Cash		1,500
Oct 10	Business License Expense	375
	Cash		375
Oct 11	Miscellaneous Expense	250
	Cash		250
ct 13	Baking Equipment	5,000
	Common Stock		5,000
Oct 13	Advertising Expense	200
	Cash		200
Oct 14	Office Supplies	300
	Cash		300
Oct 15	No JE required	0	0
Oct 30	Telephone Expense	75
	Cash		75
Oct 31	Prepaid Insurance	1,200
	Cash		1,200
Oct 31	Wages Expense	120
	Wages Payable		120
Oct 31	Cash	10,000
	Accounts Receivable	5,000
	Bakery Sales Revenue		15,000
Nov 5	Wages Payable	120
	Cash		120
Nov 8	Cash	3,800
	Accounts Receivable		3,800
Nov 10	Accounts Payable	75
	Cash		75
Nov 15	Baking Supplies	5,000
	Accounts Payable		5,000
Nov 15	Wages Expense	480
	Wages Payable		480
Nov 15	Rent Expense	1,500
	Cash		1,500
Nov 18	Cash	1,000
	Accounts Receivable		1,000
Nov 20	Accounts Payable	8,500
	Cash		8,500
Nov 20	Wages Payable	480
	Cash		480
Nov 22	Office Supplies	300
	Cash		300
Nov 30	Telephone Expense	75
	Accounts Payable		75
Nov 30	Wages Expense	420
	Wages Payable		420
Nov 30	Cash	12,500
	Accounts Receivable	7,500
	Bakery Sales Revenue		20,000
Dec 1	Dividends	10,000
	Cash		10,000
Dec 5	Wages Payable	420
	Cash		420
Dec 7	Merchandise Inventory	60
	Cash		60
Dec 8	Cash	4,000
	Accounts Receivable		4,000
Dec 10	Accounts Payable	75
	Cash		75
Dec 11	Baking Supplies	7,000
	Accounts Payable		7,000
Dec 13	Accounts Payable	5,000
	Cash		5,000
Dec 15	Wages Expense	456
	Wages Payable		456
Dec 15	Rent Expense	1,500
	Cash		1,500
Dec 15	Cash	68
	Merchandise Sales Revenue		68
Dec 15	Cost of Goods Sold	48
	Merchandise Inventory		48
Dec 20	Wages Payable	456
	Cash		456
Dec 20	Merchandise Inventory	122
	Cash		122
Dec 24	Cash	153
	Merchandise Sales Revenue		153
Dec 24	Cost of Goods Sold	109.60
	Merchandise Inventory		109.60
Dec 30	Merchandise Inventory	151.25
	Cash		151.25
Dec 31	Wages Expense	480
	Wages Payable		480
Dec 31	Cash	19,000
	Accounts Receivable	6,000
	Bakery Sales Revenue		25,000
Dec 31	Depreciation Expense ( 5,000 / ( 5 x 12) * 2.5)	208.33
	Accumulated Depreciation : Baking Equipment		208.33
Dec 31	Interest Expense ( 10,000 x 6 % x 3/12)	150
	Interest Payable		150
Dec 31	Insurance Expense ( 1,200 / 12 * 2)	200
	Prepaid Insurance		200
Dec 31	Baking Supplies Expense	19,400
	Baking Supplies		19,400
Dec 31	Office Supplies Expense	550
	Office Supplies		550