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

Peyton Approved Journal entries Date Account 1-Oct Cash Common Stock Credit Debit 25,000.00 25,000.00 8,500.00 1-Oct Baking Supplies Accounts Payable 8,500.00 10,000.00 3-Oct Cash Notes Payable 10,000.00 7-Oct Prepaid Rent Rent expense Cash 1,500.00 1,500.00 3,000.00 375.00 10-Oct Business License expense Cash 375.00 250.00 11-Oct Misc. expense Cash 250.00 5,000.00 13-Oct Baking Equipment Common Stock 5,000.00 200.00 13-Oct Advertising expense Cash 200.00 300.00 14-Oct Office Supplies Cash 300.00 15-Oct No entry 75.00 30-Oct Telephone expense Accounts Payable 75.00 1,200.00 31-Oct Prepaid Insurance Cash 1,200.00 120.00 31-Oct Wages expense Wages Payable 120.00 31-Oct Cash Accounts Receivable Bakery Sales 10,000.00 5,000.00 15,000.00 Total 69,020.00 69.020.00 Date Journal Entries Debit OY 10000 December 1 Dividend afc TO cash 10 000 420 wages outstanding -Cash 420 TO 7 Purchase To cash) Sundry ser tors 8. Cash 4000 4000 TO Sundry Debiors Accounts receivables 10. Telephone bin out Standing cash. To Purchase 7000 Tooo To Sundry Creditors. 13 Sundry 5000 creditors cash 5000 456 15. wages ra To wages outstanding 456. 15 Rent Isoo cash 1500 Impact of COGS December 15. DY 456 456. 20 wages outstanding of cash 08 20 Purchase afc cash . kash 19ooo nccount 6ooo recevabes cash / sundry Debtor Saylor 25000 sales. 24. . Impact COGS. DY 30 Purchase To cash/ Sundry Creditors 31. 480 wages afc DY wages outstanding 480 TO DY 31. Deprecation alc TO Baking equipment DY So "Interest so Interest outstanding ya \0000 X 6 X 31 Profit & LOSS alc DV To Depretation, Interest Renty wages