GENERAL
You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the companys financials for the year-end audit. Additionally, the company is interested in expanding its business within the next year. They would like your support in assessing their ability to meet their goals.
TRIAL BALANCE 2017 TAB
Using the Peyton Approved financial data (see bottom of page):
	Create the necessary adjusting journal entries. Use the REF column to reference the entry to each event
	Complete the adjusted trial balance
REVISED FINANCIAL STATEMENTS
Using the preliminary financial statements (yellow tabs) and the Trial Balance 2017, prepare the following statements:
	Balance Sheet (BS 2017 Revised tab)
	Income Statement (IS 2017 Revised tab)
	Retained Earnings Statement (RE 2017 Revised tab)
	Statement of Cash Flows (CF 2017 Revised tab)

The company is planning to open another location in 2018. Using the Preliminary Statements as a base, prepare pro forma (budgeted) financials for 2018 for the new location using the following information.

Peyton Approved Statement of cash Flow For Year Ended 12/31/2017 Peyton Approved Balance Sheet As of December 31, 2016 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Net Income Depreciation Expense Gain/Loss on Disposal of Equipment ref $ 175,476.18 $ 677.86 $ 100.00 ref Liabilities and Owners' Equity Current Liabilities Accounts Payable 16,970.00 Wages Payable 1,532.80 Interest Payable 100 50 Assets Current Assets Cash Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc Supplies 43, 106.39 42.633.00 7.318 88 79497 Adjusting entries Dr CO 1,000.00 Unadjusted trial balance Dr Cr 67,520 04 68.519 91 $ 176,254.04 1.000.00 1.110.00 1 58.50 700.00 3,175.00 15,506.70 1,238.07 200.00 200.00 Total Current Assets 96,742.72 Total Current Liabilities 18,669.30 2,114 55 2. 114 55 170.49 14,000.00 15,000.00 2,000.00 8,000.00 1,606.44 1,200.00 Increase in Accounts Receivable Increase in Other Receivables-Insurance Increase in Baking Supplies Increase in Merchandise inventory Increase in Consignment Inventory Increase in Prepaid Rent Increase in Prepaid Insurance Increase in Misc. Supplies Increase in Accounts Payable Increase in Wages Payable Increase in Interest Payable Increase in Customer Deposit $ (25,866.91 $ (700.00) $ (11,362.84) $ (243.10) $ (200.00) $ (449.55) $ (1,004,55) (114.99) $ 6.467.11 1,850.48 $ 44.96 $ 1,000.00 $(30,579.39) Long Tem Fixed Assets Baking Equipment Acamulated Depreciation NetFixed assets Long Term Liabilities: Notes Payable Total Long Term Liabilities: Total Liabilities: Common Stook Retained Earning 15,000.00 33,669.30 7,07142 1,000.00 3,175.00 20,000.00 50.144.84 20.262.11 3,383 28 211.46 5,000.00 20,000.00 50.144.84 Total Equity Cash Accounts Receivable Other Receivable - Insurance Baking Supplies Merchandise Inventory Consignment Inventory Prepaid Rent Prepaid Insurance Misc Supplies Baking Equipment Accumulated Depreciation Customer Deposit Accounts Payable Wages Payable O Interest Payable Notes Payable Common Stock Beginning Retained earnings Dividends Bakery Sales Merchandise Sales Cost of Goods Sold-Baked Cost of Goods Sold - Merchandise Rent Expense Wages Expense Misc Supplies Expense Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Gain Loss on disposal of equipment 70.14484 Adjusted trial balance Dr Cr 68,520.04 68,519.91 700.00 18 681 70 1.038.07 200.00 2,114.55 2,11455 170.49 12,000.00 406 44 1,000.00 23.437.11 3383 28 21146 5,000.00 20 000.00 50.144.84 105,000.00 327 322.55 1 205.64 105.834 29 859.77 24 549.19 10,670.72 3,000.46 2,045.77 1.363 84 677.86 1.091.08 1.549.74 818 31 490 98 100.00 43211132 43211132 Total Assets 103,81414 Total Liabilities & Equity 103 814 14 105,000 00 Operating Cash Flow $ 145,519.37 327 322 55 1 205.64 Cash Flow from Investments Equipment Purchases Peyton Approved Balance Sheet As of December 31, 2017 $ (6,000.00) Cash Flow from Investments $ (6,000.00) Liabilities Current Liabilities Accounts Payable Wages Payable Interest Payable Customer Depost 22.43711 3.383 28 211.40 1,000.00 Cash Flow from Financing Repayment of Note Payable Dividends Paid 105,834 29 859.77 24,549.19 10,670.72 3,000 46 2,045.77 1,363 84 677 86 1,091 08 1,549.74 818 31 490 98 Assets Current Assets Cash Account Receivable Other Receivable-Insurance Baking Supplies Mercadise Inventory Consignment Inventory Prepaid Rent Prepaid Insurance Miss Supplies Total Current Assets $ (10,000.00) $ (105,000.00) 68,520 04 68,51991 700.00 18.081.70 1,038 07 200 00 211456 211456 170.49 28,03185 Cash Flow from Financing $ (115,000.00) 5,000.00 100.00 6.375 00 102.069.31 5,000.00 429,136 32 429,136 32 6.375.00 Total Current Liabilities Long Term Liabilities: Notes Payable Total Long Term Liabilities: Total Liabilities Common Stook Retained Earning Net Cash Flow $ 24,519.37 33,03185 Beginning Cash $ 43,165.39 Long Tem/Fixed Assets Baking Equipment Accumulated Depreciation Net Fixed assets 12.000.00 (408,44 11.69350 20.000.00 120.621.02 Ending Cash $ 68,520.04 Total E 140.621.02 Total Assets $ 173.66287 Total Liabilities & Equity 173.66287 Peyton Approved Statement of cash Flow For Year Ended 12/31/2017 Peyton Approved Balance Sheet As of December 31, 2016 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Net Income Depreciation Expense Gain/Loss on Disposal of Equipment ref $ 175,476.18 $ 677.86 $ 100.00 ref Liabilities and Owners' Equity Current Liabilities Accounts Payable 16,970.00 Wages Payable 1,532.80 Interest Payable 100 50 Assets Current Assets Cash Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc Supplies 43, 106.39 42.633.00 7.318 88 79497 Adjusting entries Dr CO 1,000.00 Unadjusted trial balance Dr Cr 67,520 04 68.519 91 $ 176,254.04 1.000.00 1.110.00 1 58.50 700.00 3,175.00 15,506.70 1,238.07 200.00 200.00 Total Current Assets 96,742.72 Total Current Liabilities 18,669.30 2,114 55 2. 114 55 170.49 14,000.00 15,000.00 2,000.00 8,000.00 1,606.44 1,200.00 Increase in Accounts Receivable Increase in Other Receivables-Insurance Increase in Baking Supplies Increase in Merchandise inventory Increase in Consignment Inventory Increase in Prepaid Rent Increase in Prepaid Insurance Increase in Misc. Supplies Increase in Accounts Payable Increase in Wages Payable Increase in Interest Payable Increase in Customer Deposit $ (25,866.91 $ (700.00) $ (11,362.84) $ (243.10) $ (200.00) $ (449.55) $ (1,004,55) (114.99) $ 6.467.11 1,850.48 $ 44.96 $ 1,000.00 $(30,579.39) Long Tem Fixed Assets Baking Equipment Acamulated Depreciation NetFixed assets Long Term Liabilities: Notes Payable Total Long Term Liabilities: Total Liabilities: Common Stook Retained Earning 15,000.00 33,669.30 7,07142 1,000.00 3,175.00 20,000.00 50.144.84 20.262.11 3,383 28 211.46 5,000.00 20,000.00 50.144.84 Total Equity Cash Accounts Receivable Other Receivable - Insurance Baking Supplies Merchandise Inventory Consignment Inventory Prepaid Rent Prepaid Insurance Misc Supplies Baking Equipment Accumulated Depreciation Customer Deposit Accounts Payable Wages Payable O Interest Payable Notes Payable Common Stock Beginning Retained earnings Dividends Bakery Sales Merchandise Sales Cost of Goods Sold-Baked Cost of Goods Sold - Merchandise Rent Expense Wages Expense Misc Supplies Expense Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Gain Loss on disposal of equipment 70.14484 Adjusted trial balance Dr Cr 68,520.04 68,519.91 700.00 18 681 70 1.038.07 200.00 2,114.55 2,11455 170.49 12,000.00 406 44 1,000.00 23.437.11 3383 28 21146 5,000.00 20 000.00 50.144.84 105,000.00 327 322.55 1 205.64 105.834 29 859.77 24 549.19 10,670.72 3,000.46 2,045.77 1.363 84 677.86 1.091.08 1.549.74 818 31 490 98 100.00 43211132 43211132 Total Assets 103,81414 Total Liabilities & Equity 103 814 14 105,000 00 Operating Cash Flow $ 145,519.37 327 322 55 1 205.64 Cash Flow from Investments Equipment Purchases Peyton Approved Balance Sheet As of December 31, 2017 $ (6,000.00) Cash Flow from Investments $ (6,000.00) Liabilities Current Liabilities Accounts Payable Wages Payable Interest Payable Customer Depost 22.43711 3.383 28 211.40 1,000.00 Cash Flow from Financing Repayment of Note Payable Dividends Paid 105,834 29 859.77 24,549.19 10,670.72 3,000 46 2,045.77 1,363 84 677 86 1,091 08 1,549.74 818 31 490 98 Assets Current Assets Cash Account Receivable Other Receivable-Insurance Baking Supplies Mercadise Inventory Consignment Inventory Prepaid Rent Prepaid Insurance Miss Supplies Total Current Assets $ (10,000.00) $ (105,000.00) 68,520 04 68,51991 700.00 18.081.70 1,038 07 200 00 211456 211456 170.49 28,03185 Cash Flow from Financing $ (115,000.00) 5,000.00 100.00 6.375 00 102.069.31 5,000.00 429,136 32 429,136 32 6.375.00 Total Current Liabilities Long Term Liabilities: Notes Payable Total Long Term Liabilities: Total Liabilities Common Stook Retained Earning Net Cash Flow $ 24,519.37 33,03185 Beginning Cash $ 43,165.39 Long Tem/Fixed Assets Baking Equipment Accumulated Depreciation Net Fixed assets 12.000.00 (408,44 11.69350 20.000.00 120.621.02 Ending Cash $ 68,520.04 Total E 140.621.02 Total Assets $ 173.66287 Total Liabilities & Equity 173.66287