All the information need to be in the workbook ....

\fACC 201 Final Project Peyton Approved Instructions For this deliverable, you will complete the accounting cycle and prepare financial statements that will provide the result you need to assess the success of business operations. Below you will find the data required to make entries in your accounting workbook. Remember that you are following the business transactions for a three-month period from the initial stage of analysis and recording, through the reporting process. These transactions will include: the initial setup of the business cash and credit sales 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. There will be two checkpoints, along the way, at which time you will submit your progress in this workbook to your instructor for review and feedback toward correction and successful demonstration of this accounting cycle as a whole. Your first check point will cover steps 1 through 4 of this workbook. The first checkpoint is in Module 3. The second checkpoint will have you submit your workbook completed through step 7 in Module 4. You will integrate the feedback, suggestions, and guidance your instructor provides on these steps in the cycle to ensure your success with completion of this cycle. The following steps are included: Step 1: Complete the following in the \"July Journal Entries\" tab 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 - You take $15,000 from your personal savings account and buy common stock in Peyton Approved. July 1-Purchase $8500 in baking supplies from vendor, on account 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 - Pay $3000 toward lease agreement for bakery space. The agreement is for 1 year. The rent is $1,500 per month, last month's rent was required at time of lease agreement. Lease period is effective July 1st 2014 through June 30th, 2015. 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, which 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 $300 for miscellaneous (use misc. supplies). July 15 - Hire part-time helper to be paid $12 per hour. Pay periods are the 1 st through the 15th and 16th through the end of the month with paydays being the 20 th for the first pay period and the 5th of the following month for the second pay period. (No entry required on this date; for informational purposes only) July 30- Received telephone bill for July in amount of $45. Payment is due on August 10 th July 31 - Pay $1,200 for a 12-month insurance policy. Policy effective dates August 1, 2014 through July 31st, 2015 July 31- Accrue wages earned for employee for period of 16 th through 31st of July (Wage calculations table is provided for you, below) Total July bakery sales were $15,000. $5000 of these sales on accounts receivable Step 2: Complete the following transactions in the August Journal Entries tab in your workbook August 5- paid employee for period ending 7/31 August 8-Receive payments from customers towards accounts receivable in amount of $3200. August 10 - paid July telephone bill August 15- Purchase additional baking supplies in amount of $5000 from vendor, on account. August 15 - Accrue wages earned for employee from period of 1 st through 15th of August (Wage calculations table provided below) August 15-Pay rent on bakery space $1500 August 18-Receive payments from customers towards accounts receivable in amount of $1000 August 20- paid $8500 toward baking supplies vendor payable August 20- pay employee for period ending 8/15 August 22- $300 in misc. supplies purchased August 31- received telephone bill for August in amount of $45. Payment is due on September 10th. August 31- Accrue wages earned for employee for period of August 16 th through August 31st (Wage calculations table provided below) August bakery sales total $20,000. $7,500 of this total on accounts receivable. Step 3: Many customers have been asking for more hypo-allergenic products, so in September 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. Please see the Inventory Valuation tab in your workbook, to review application of costs using the FIFO, LIFO, and average methods based on purchase and sales information. You will choose the method you feel most appropriate, and bring the journal entries from the inventory valuation page into your journal for the month of September, to ensure the impact of merchandising is reflected in your reporting. Complete the following transactions in the September Journal Entries tab in your workbook. September 1- paid dividends to self in amount of $3000 September 5-pay employee for period ending 8/31 September 7-Purchase merchandise for resale. See inventory valuation tab for details. September 8- Receive payments from customers toward accounts receivable in amount of $4000 September 10- pay August telephone bill September 11-purchase baking supplies in amount of $ 7,000 from vendor on account. September 13- Paid on supplies vendor account in amount of $5000 September 15- Accrue employee wages for period of September 1 st through September 15th September 15- Pay rent on bakery space $1500 September 15-Record merchandise sales transaction. See inventory valuation tab for details. September 15-Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details. September 20- Pay employee for period ending 9/15 September 20-Purchase merchandise inventory for resale to customers. See inventory valuation tab for details. September 24- Record sales of merchandise to customers. See inventory valuation tab for details. September 24- Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details. September 30- Purchase merchandise inventory for resale to customers. See inventory valuation tab for details. September 30-Accrue employee wages for period of September 16 th through September 30th Total September bakery sales $25,000. $6,000 of these sales on accounts receivable. Step 4: Post entries to t accounts. Use the t accounts page in your workbook to post all journal entries to the appropriate ledger account and calculate account balances as of September 30 th. Step 5: Prepare the Unadjusted Trial Balance Use the t account balances completed in the previous step to prepare the unadjusted trial balance portion of the Trial Balance tab in your workbook. Step 6: You will use the \"Adjusting Entries\" tab in your workbook to complete the following entries. See sample for Depreciation of Baking Equipment. Take the adjusting entries from this worksheet and enter them into the trial balance on the Steps 5 and 7 Trial Balance tab. On September 30, 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. Accrue interest for note payable. Assume a full month of interest for July. (6% annual interest on $10,000 loan from parents. Record insurance used for the year. Actual baking supplies on-hand as of September 30 th is $1100. Misc. supplies on-hand as of September 30th is $50. Step 7: Apply adjusting entries to the trial balance to create the adjusted trial balance. Adjusting entries from Step 6 will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial balance. Step 8: Prepare the financial statements Use your adjusted trial balance to prepare the income statement, statement of owner's equity, and balance sheet. You must complete these statements in this order, as there are interdependencies among them. Step 9: 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 10 You will use the Post Closing Trial Balance tab in your workbook to do the following: Prepare the post-closing trial balance for the next accounting period. Step 11\" You will use the \"Reversing Entries\" tab in your workbook to do the following: Prepare reversing entries. This completes your workbook! Wage calculation data: Month 31-Jul 15-Aug 31-Aug 15-Sep 30-Sep Hours 10 40 35 38 40 Rate 12 12 12 12 12 Pay 120 480 420 456 480 Asset Accounts Acct # Cash Baking Supplies Prepaid Rent Prepaid Insurance Baking Equipment Misc. Supplies Accounts Receivable Accumulated Depreciation Merchandise Inventory 101 102 103 104 105 106 107 108 109 This chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and journaling transactions for this workbook. There is nothing to complete on this page; this is simply a resource for you. Liability Accounts Acct # Notes Payable Accounts Payable Wages Payable Interest Payable he appropriate accounts to record to as you are analyzing and is nothing to complete on this page; this is simply a resource for you. 201 202 203 204 Equity Accounts Acct # Common Stock Dividends 301 302 Revenue Accounts Acct # Bakery Sales Merchandise Sales 401 402 Expense Accounts Acct # Baking Supplies Expense Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Interest Expense Depreciation Expense Misc. Supplies Expense Cost of Goods Sold 501 502 503 504 505 506 507 508 509 510 511 512 Peyton Approved General Journal Entries Jul-14 Date Accounts 1-Jul Cash Common Stock Contributed cash for common stock Debit 15,000.00 Credit 15,000.00 Peyton Approved General Journal Entries Aug-14 Date Accounts Debit Credit Peyton Approved General Journal Entries Sep-14 Date Accounts Debit Credit FIFO Date 7-Sep Purchases 10 $ 6.00 $ Sales 60.00 15-Sep 20-Sep 8 $ 20 $ 6.10 $ 6.05 $ 151.25 $ 333.25 Purchases 10 $ 6.00 $ 60.00 55 LIFO 7-Sep 6.10 $ 6.05 $ $ 12.00 97.60 109.60 157.60 4 4 25 29 29 10 6.00 $ 48.00 151.25 2 2 20 22 18 $ 25 $ 6.00 $ 6.10 $ $ 122.00 24-Sep 30-Sep 26 8 $ 20 $ 2 Sales 15-Sep 20-Sep 48.00 2 20 22 2 $ 16 $ 25 $ 6.00 $ 122.00 24-Sep 30-Sep 10 6.10 $ 109.80 2 2 4 2 2 25 29 55 weighted average 7-Sep $ 333.25 Purchases 10 $ 6.00 $ 60.00 6.10 $ 55 29 48.00 6.05 $ 151.25 $ 333.25 2 2 20 22 18 $ 25 $ 6.00 $ 122.00 24-Sep 30-Sep 157.80 10 8 $ 20 $ $ Sales 15-Sep 20-Sep 26 26 6.09 $ 109.62 4 157.62 4 25 29 $ Ending Inventory 6.00 $ 60.00 $ 6.00 $ 12.00 $ $ 6.00 $ 6.10 $ $ 12.00 122.00 134.00 $ 6.10 $ 24.40 $ $ 6.10 $ 6.05 $ $ $ 24.40 151.25 175.65 175.65 $ Ending Inventory 6.00 $ 60.00 $ 6.00 $ 12.00 $ $ 6.00 $ 6.10 $ $ 12.00 122.00 134.00 $ $ 6.00 $ 6.10 $ $ 12.00 12.20 24.20 $ $ $ 6.00 $ 6.10 $ 6.05 $ $ 12.00 12.20 151.25 175.45 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory Dr 60.00 15-Sep Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Recorded the cost of goods sold 48.00 20-Sep Merchandise Inventory (20 x $6.10 ) Cash 122.00 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10) Merchandise Inventory Recorded the cost of goods sold 109.60 30-Sep Merchandise Inventory (25 x $6.05) Cash 151.25 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 15-Sep Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Record inventory reduction due to sale 48.00 20-Sep Merchandise Inventory (20 x $6.10) Cash 122.00 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue 153.00 $ $ Ending Inventory 6.00 $60 $ 6.00 $ $ $ 6.00 $ 6.10 $ $ $ $ 175.45 $ 6.05 $ $ Record sale of inventory 24-Sep Cost of Goods Sold (18 x $6.10) Merchandise Inventory Record inventory reduction due to sale 109.80 30-Sep Merchandise Inventory (25 x $6.05) Cash 151.25 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 12.00 12.00 122.00 per unit 134.00 $6.09 24.38 151.25 151.25 $5.22 15-Sep Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Record inventory reduction due to sale 48.00 20-Sep Merchandise Inventory (20 x $6.10) Cash 122.00 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 24-Sep Cost of Goods Sold (18 x $6.09) Merchandise Inventory Record inventory reduction due to sale 109.62 30-Sep Merchandise Inventory (25 x $6.05) Cash 151.25 Cr 60.00 68.00 ### 122.00 153.00 109.60 151.25 ### 68.00 ### 122.00 153.00 Purchases 9/7: 10 bottles purchased at $6 9/20: 20 bottles purchased at $6.10 9/30: 25 bottles purchased at $6.05 Sales - selling price, $8.50 a bottle 9/15: 8 bottles 9/24: 18 bottles 109.80 151.25 ### 68.00 ### 122.00 153.00 109.62 151.25 date 1-Jul Cash 15,000.00 date date Notes Payable date 0 Accounts Rec. 0 15,000.00 15,000.00 - Misc. expense Baking equipment 0 0 Baking supplies 0 Prepaid rent Misc. supplies 0 Prepaid insurance 0 Accounts payable Salary and wages expense - Telephone expense - Dividends baking supplies expense adj 0 misc supplies expense COGS LIF0 adj 0 Merchandise Sales Revenue - COGS Weighted Avg. - Business License exp 0 Common Stock 15,000 1-Jul 15,000 Insurance expense COMPLETION OF STEPS 1- 4 DELIVERABLE: CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOUR WORKBOOK TO COMPLETE THE 3-3 CHECKPOINT REQUIREMENT 0 Advertising expense 0 Rent expense - Bakery Sales 0 Salaries and wages payable 0 depreciation expense acc dep 0 Interest expense Interest payable 0 adj adj 0 COGS FIFO 0 - Merch. Inv. FIFO - Merch. Inv. LIFO - READY TO SUBMIT YOUR POINT REQUIREMENT Merch. Inv. Avg. - Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Peyton Approved Trial Balance 2014 Unadjusted trial balance Debit Credit Baking Equipment Misc. Supplies Accounts Receivable Notes Payable Accounts Payable Wages Payable Common Stock Dividends Bakery Sales Merchandise Sales Baking Supplies Expense Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense COGS Depreciation Expense Accumulated Depreciation Misc Supplies Expense* Interest Expense* Interest Payable* - - - *These accounts will not be utilized before the adjusting process. They should have zero balance in the unadjust Approved Balance 014 Adjusting entries Debit Credit Adjusted trial balance Debit Credit COMPLETION OF STEPS 5-7 DELIVERABL CONGRATULATIONS! YOU ARE NO WORKBOOK TO COMPLETE THE 4-3 CHE 208.33 ### 208.33 208.33 208.33 have zero balance in the unadjusted trial balance. 208.33 208.33 208.33 N OF STEPS 5-7 DELIVERABLE: ULATIONS! YOU ARE NOW READY TO SUBMIT YOUR TO COMPLETE THE 4-3 CHECKPOINT REQUIREMENT Peyton Approved Adjusting Journal Entries 2014 Date Accounts 30-Sep Depreciation Expense accumulated depreciation Debit 208.33 Credit 208.33 Peyton Approved Income Statement For Qtr. Ending 9/30/2014 Peyton Approved Statement of Retained Earnings For Qtr. Ending 9/30/2014 Peyton Approved Balance Sheet As of September 30, 2014 Assets Peyton Approved Balance Sheet As of September 30, 2014 Liabilities and Owners' Equity Peyton Approved Closing Entries 9/30/2014 Date Accounts Debit Credit Peyton Approved Post Closing Trial Balance 9/30/2014 Account Unadjusted Trial Balance Debit adjusted Trial Balance Credit Peyton Approved Reversing Entries 9/30/2014 Date Accounts Debit Credit COMPLETION OF STEPS 8-11 DELIVERABLE: CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOUR COMPLETED WORKBOOK (STEPS 1 - 11)TO COMPLETE THE 6-2 CHECKPOINT REQUIREMENT E 6-2 CHECKPOINT