Create financial statements by properly employing prescribed methods in accordance with generally accepted accounting principles: A. Step Eight: Prepare the financial statements. Note that you must use your adjusted trial balance to prepare the income statement, statement of owners equity, and balance sheet. You must complete these statements in this order, as there are interdependencies among them. [ACC-201- 03] B. Step Nine: Complete the Closing Entries tab in your workbook by closing all temporary income statement amounts to create closing entries. [ACC-201-03] C. Step Ten: Prepare the Post Closing Trial Balance tab for the next accounting period. [ACC-201-03] D. Step Eleven: Prepare the reversing entries in the Reversing Entries tab of your workbook. [ACC-201-03]

Peyton Approved
Trial Balance
2018
	Unadjusted trial balance		Adjusting entries		Adjusted trial balance
Account	Debit	Credit	Debit	Credit	Debit	Credit
Cash	14,236.75				14,236.75
Baking Supplies	18,500.00			17,400.00	1,100.00
Merchandise Inventory (FIFO)	175.45				175.45
Prepaid Rent	1,500.00				1,500.00
Prepaid Insurance	2,400.00			400.00	2,000.00
Baking Equipment	6,000.00				6,000.00
Accumulated Depreciation				250.00		250.00
Office Supplies	600.00			550.00	50.00
Accounts Receivable	25,700.00				25,700.00
Notes Payable		10,000.00				10,000.00
Interest Payable				150.00		150.00
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		55,000.00				55,000.00
Merchandise Sales		221.00				221.00
Baking Supplies Expense			17,400.00		17,400.00
Rent Expense	4,500.00				4,500.00
Interest Expense			150.00		150.00
Insurance Expense			400.00		400.00
Depreciation Expense			250.00		250.00
Misc. Expense	250.00				250.00
Office Supplies Expense			550.00		550.00
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)	86,701.00	86,701.00	18,750.00	18,750.00	87,101.00	87,101.00