Apply the accrual basis of accounting to correctly create adjusting entries in the preparation of financial statements A Step Five Prepare the unadjusted trial balance Note that you should 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 Peyton Approved Trial Balance 2018 Unadjusted trial balance Adjusting entries Adjusted trial balance Account Debit Credit Debit Credit Debit Credit Cash 28,320 00 28,320 00 Baking Supplies 18,500 00 18,500 00 Merchandise Inventory (FIFO) 112 25 112 25 Prepaid Rent 1,500 00 1,500 00 Prepaid Insurance 2,400 00 2,400 00 Baking Equipment 6,000 00 6,000 00 Accumulated Depreciation 250 00 250 00 Office Supplies 600 00 600 00 Accounts Receivable 7,700 00 7,700 00 Notes Payable 10,000 00 10,000 00 Interest Payable Accounts Payable 5,000 00 5,000 00 Wages Payable 480 00 480 00 Common Stock 16,000 00 16,000 00 Dividends 10,000 00 10,000 00 Bakery Sales 35,109 80 35,109 80 Merchandise Sales 157 80 157 80 Baking Supplies Expense Rent Expense 4,500 00 4,500 00 Interest Expense Insurance Expense Depreciation Expense 250 00 250 00 Misc Expense 250 00 250 00 Office Supplies Expense Business License Expense 375 00 375 00 Advertising Expense 200 00 200 00 Wages Expense 1,956 00 1,956 00 Telephone Expense 150 00 150 00 COGS (FIFO) 157 80 157 80 Total (FIFO) 82,721 05 66,747 60 250 00 250 00 82,971 05 66,997 60 Date Accounts Debit Credit 30 Sep Depreciation Expense (6000 5) 2 5 12 Accumulated depreciation 250 250 00 To record depreciation 30 Sep Interest expense (10000 6 3 12) 150 00 Interest pavable 150 00 To record accrual of interest 30 Sep Insurance expense (2400 2 12) 400 00 Prepaid Insurance 400 00 To record expire of insurance 30 Sep Baking supplies expense (6500 5000 7000 1100 17,400 00 Baking Supplies 17,400 00 To record consumption of Baking supplies 30 Sep Misc Supplies expense (300 300 50 Misc Supplies 550 00 550 00 To record consumption of Misc supplies) Date Accounts Debit Credit 30 Sep Depreciation Expense (6000 5) 2 5 12 Accumulated depreciation 250 250 00 To record depreciation 30 Sep Interest expense (10000 6 3 12) 150 00 Interest pavable 150 00 To record accrual of interest 30 Sep Insurance expense (2400 2 12) 400 00 Prepaid Insurance 400 00 To record expire of insurance 30 Sep Baking supplies expense (6500 5000 7000 1100 17,400 00 Baking Supplies 17,400 00 To record consumption of Baking supplies 30 Sep Misc Supplies expense (300 300 50 Misc Supplies 550 00 550 00 To record consumption of Misc supplies)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 03, 2024

Apply the accrual basis of accounting to correctly create adjusting entries in the preparation of financial statements: A. Step Five: Prepare the unadjusted trial balance.

Apply the accrual basis of accounting to correctly create adjusting entries in the preparation of financial statements: A. Step Five: Prepare the unadjusted trial balance. Note that you should 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. Peyton Approved
Trial Balance
2018
	Unadjusted trial balance		Adjusting entries		Adjusted trial balance
Account	Debit	Credit	Debit	Credit	Debit	Credit
Cash	28,320.00				28,320.00
Baking Supplies	18,500.00				18,500.00
Merchandise Inventory (FIFO)	112.25				112.25
Prepaid Rent	1,500.00				1,500.00
Prepaid Insurance	2,400.00				2,400.00
Baking Equipment	6,000.00				6,000.00
Accumulated Depreciation				250.00		250.00
Office Supplies	600.00				600.00
Accounts Receivable	7,700.00				7,700.00
Notes Payable		10,000.00				10,000.00
Interest Payable						-
Accounts Payable		5,000.00				5,000.00
Wages Payable		480.00				480.00
Common Stock		16,000.00				16,000.00
Dividends	10,000.00				10,000.00
Bakery Sales		35,109.80				35,109.80
Merchandise Sales		157.80				157.80
Baking Supplies Expense					-
Rent Expense	4,500.00				4,500.00
Interest Expense					-
Insurance Expense					-
Depreciation Expense			250.00		250.00
Misc. Expense	250.00				250.00
Office Supplies Expense					-
Business License Expense	375.00				375.00
Advertising Expense	200.00				200.00
Wages Expense	1,956.00				1,956.00
Telephone Expense	150.00				150.00
COGS (FIFO)	157.80				157.80

Total: (FIFO)	82,721.05	66,747.60	250.00	250.00	82,971.05	66,997.60

Date Accounts Debit Credit 30-Sep Depreciation Expense (6000/5) *2.5/12 Accumulated depreciation 250 250.00 To record depreciation 30-Sep | Interest expense (10000 *6% *3/12) 150.00 Interest pavable 150.00 To record accrual of interest 30-Sep Insurance expense (2400 *2/12) 400.00 Prepaid Insurance 400.00 To record expire of insurance 30-Sep Baking supplies expense (6500 +5000+7000-1100 17,400.00 Baking Supplies 17,400.00 To record consumption of Baking supplies 30-Sep Misc Supplies expense (300 +300-50 Misc. Supplies 550.00 550.00 To record consumption of Misc. supplies) Date Accounts Debit Credit 30-Sep Depreciation Expense (6000/5) *2.5/12 Accumulated depreciation 250 250.00 To record depreciation 30-Sep | Interest expense (10000 *6% *3/12) 150.00 Interest pavable 150.00 To record accrual of interest 30-Sep Insurance expense (2400 *2/12) 400.00 Prepaid Insurance 400.00 To record expire of insurance 30-Sep Baking supplies expense (6500 +5000+7000-1100 17,400.00 Baking Supplies 17,400.00 To record consumption of Baking supplies 30-Sep Misc Supplies expense (300 +300-50 Misc. Supplies 550.00 550.00 To record consumption of Misc. supplies)