I have one more question on my unadjusted trial balance. My purchases are off and I am not sure how to fix this one.

Final Project Peyton Approved Data You will prepare financial statements that will allow you to assess how profitable the business is. Below you will find the data required to make entries in your accounting workbook. Remember that you are following the business transactions for a six-month period from the initial stage of analysis and recording, through the reporting process. These transactions will include: the initial setup of the business sales purchases 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. Step 1: Complete the following in the \"July Journal Entries\" 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 - Open a bank account for Peyton Approved.This has been done for you in the July Journal Entries tab. July 1 - You take $15,000 from your personal savings account and buy common stock in Peyton Approved. This has been done for you in the July Journal Entries tab. 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 - Sign a lease agreement for retail/bakery space. The agreement is for 1 year, with the option to extend the lease on a month-to-month basis after 1 year. The rent is $1,500 per month. The lease period starts on July 15, first and last month's rent due at that time. Subsequent rents are due on the 15 th day of each month. 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, that 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 $1,000 for baking ingredients (use baking supplies account). 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. July 15 - Pay first and last month's rent. July 16 - Open the doors of the bakery. July 31 - Pay $1,200 for a 12-month insurance policy. Step 2: Enter the Bakery Sales totals (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the August Journal Entries tab. The following events occur during the next 6 months: Bakery sales are recorded on the last day of the month. The following sales occurred: July - $5,000 August - $20,000 (cell B28) September - $22,500 October - $27,000 November - $25,000 December- $30,000 Step 3: Enter the baking supply purchases (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the September Journal Entries Tab. The following baking supplies purchases are made on credit: August 8 - $8,500, net 30 - paid 8/30 September 10 - $9,000, net 30 - paid 10/1 (cell B10) October 12 - $10,000, net 30 - paid 11/1 November 10 - $10,000, net 30 - paid 12/1 December 4 - $12,000, net 30 - paid 1/2 Step 4: Enter the miscellaneous supplies purchased (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the October Journal Entries Tab. The following misc. supplies were purchased: August 25 - $300 September 19 - $325 October 14 - $310 (cell B19) November 11 - $300 December 8 - $300 Step 5: Enter payroll (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the November Journal Entries Tab. Through December 31, the part-time employee worked the following hours: (ignore payroll taxes) (see table to right) Step 6: Enter the following monthly bills received and paid (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the December Journal Entries tab (sample in cells B22, B28, and B57). The following monthly bills are received and paid (July-December) Rent - paid each 15th - $1,500 Phone - received on the 30th of each month, paid on the following 10 th - $45 Step 7: You pay yourself via the issuance of dividends. Enter the dividends (below) in the appropriate Journal Entries month tab, as indicated below. See sample in the September Journal Entries tab. The following dividends were paid and issued: 9/30 - 2,000 (Cell B32) 10/30 - 2,500 11/30 - 2,500 12/31 - 2,500 Step 8: Many customers have been asking for more hypo-allergenic products, so in November 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. You will use the \"Inventory Valuation\" tab in your workbook to complete the following entries. See samples for November for FIFO, LIFO, and the Weighted Average (wt. avg). Purchases 11/7: 10 bottles purchased at $6 11/20: 20 bottles purchased at $6.10 12/1: 25 bottles purchased at $6.05 12/14: 30 bottles purchased at $6.00 12/26: 20 bottles purchases at $6.08 Sales - selling price, $8.50 a bottle 11/15: 8 bottles 11/30: 18 bottles 12/15: 22 bottles 12/24: 24 bottles Step 9: You will use the \"Adjusting Entries\" tab in your workbook to complete the following entries. See sample for Depreciation of Baking Equipment. On December 31, 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. ( Cell B6) Accrue interest for note payable (Assume a full month of interest for July). Record insurance used for the year. An inventory of baking supplies shows $1,100 of supplies are remaining. An inventory of misc. supplies shows $50 remaining. Congratulations, you have now completed Section 1 (all) and parts a & b of Section 2 of the Final Project Part I. Now you will work on your trial balance sheet, balance sheet, and financial statements. The information is below as well: Step 10: You will use the \"T-Accounts\" tab in your workbook to complete the following. See sample in row 3. Complete the rest on your own. Accumulate the numbers in your t-accounts using the T-Accounts tab in your workbook. Step 11: You will use the \"Trial balance\" tab in your workbook to complete the following. See sample in row 7. Complete the rest on your own. See Exhibit 3-7 on page 62 for more information and use those to guide you through the following steps. Using the account balances from your t-accounts, accurately prepare unadjusted trial balance. Step 12 Continue using the \"Trial balance\" tab in your workbook to complete the following. See sample in row 7. Complete the rest on your own. See Exhibit 3-7 on page 62 for more information. Month Hours 31-Jul 15-Aug 31-Aug 15-Sep 30-Sep 15-Oct 31-Oct 15-Nov 30-Nov 15-Dec 31-Dec Rate 10 40 35 38 40 37 40 35 30 45 40 Pay 12 12 12 12 12 12 12 12 12 12 12 120 480 420 456 480 444 480 420 Cell B29 360 Cell B55 540 480 Interpret trial balance and make appropriate end-of-period adjustments. Step 13 You will use the \"Adjusting Entries\" tab in your workbook to complete the following. See Exhibit 3-7 on page 62 for more information. Post adjusted entries and prepare the adjusted trial balance. Step 14 You will use the \"Income Statement,\" \"Balance Sheet,\" and \"Statement of Retained Earnings\" tabs in your workbook to do the following: Apply adjusted trial balance and prepare financial statements. Step 15 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 16 You will use the \"Trial Balance\" tab in your workbook to do the following: Prepare the post-closing trial balance for the next accounting period. Step 17 You will use the \"Reversing Entries\" tab in your workbook to do the following: Prepare reversing entries. Step 18 Almost there! Finally, after you have completed your workbook, address the following written sections in a separate document and submit along with your workbook. Discuss the financial statements. Determine the purpose of each statement. What does each financial statement tell you as a business owner? What decisions/changes in operations will you make based on the results reported in your statements? Peyton Approved General Journal Entries Jul-14 Date Accounts 1 Cash Common Stock To Record Sale of Common Stock 3 Cash Note Payable 2 year Note 6% payable at maturity Debit 15,000.00 Credit 15,000.00 10,000.00 10,000.00 10 Business License Expense Cash Business License 375.00 11 Misc Expense Cash Purchase Cash Register 250.00 13 Equipment Common Stock To record transfer of equipment for stock 13 Advertising Expense Cash 14 Baking Supplies Cash 375.00 250.00 5,000.00 5,000.00 200.00 200.00 1,000.00 1,000.00 14 Misc Supplies Cash 300.00 15 Rent Expense Prepaid Rent Cash 1,500.00 1,500.00 30 Telephone Expense Accounts Payable 300.00 3,000.00 45.00 45.00 31 Prepaid Insurance Cash Purchase insurance 12 months 1,200.00 31 Cash Bakery Sales 5,000.00 31 Salary and Wage Expense Salary and Wage Payable 1,200.00 5,000.00 120.00 120.00 41,490.00 41,490.00 Peyton Approved General Journal Entries Aug-14 Date Accounts 8 Baking Supplies Accounts Payable Debit 8,500.00 Credit 8,500.00 5 Salary and Wage Payable Cash 120.00 10 Accounts Payable - Phone Cash 45.00 15 Salary and Wage Expense Salary and Wage Payable 15 Rent Expense Cash 120.00 45.00 480.00 480.00 1,500.00 1,500.00 20 Salary and Wage Payable Cash 480.00 25 Misc Supplies Cash 300.00 30 Accounts Payable -Bakery Supplies Cash 30 Telephone Expense Accounts Payable 30 cash Bakery Sales 31 Salary and Wage Expense Salary and Wage Payable 480.00 300.00 8,500.00 8,500.00 45.00 45.00 20,000.00 20,000.00 420.00 420.00 40,390.00 40,390.00 Peyton Approved General Journal Entries Sep-14 Date Accounts 5 Salary and Wage Payable Cash 10 Bakery Supplies accounts payable 10 Accounts Payable - Phone Cash 15 Rent Expense Cash Debit 420.00 Credit 420.00 9,000.00 9,000.00 45.00 45.00 1,500.00 1,500.00 15 Salary and Wage Expense Salary and Wage Payable 456.00 19 Misc Supplies Cash 325.00 20 Salary and Wage Payable Cash 456.00 30 Telephone Expense Accounts Payable 30 Dividends Cash 30 Cash Bakery Sales 30 Salary and Wage Expense Salary and Wage Payable 456.00 325.00 456.00 45.00 45.00 2,000.00 2,000.00 22,500.00 22,500.00 480.00 480.00 37,227.00 37,227.00 Peyton Approved General Journal Entries Oct-14 Date Accounts 1 Accounts Payable - Bakery Supplies Cash Debit 9,000.00 Credit 9,000.00 5 Salary and Wage Payable Cash 480.00 10 Accounts Payable - Phone Cash 45.00 12 Baking Supplies Accounts Payable 480.00 45.00 10,000.00 10,000.00 14 misc. supplies cash 310.00 15 Rent Expense Cash 1,500.00 310.00 1,500.00 15 Salary and Wage Expense Salary and Wage Payable 444.00 20 Salary and Wage Payable Cash 444.00 30 Telephone Expense Accounts Payable 30 Cash Bakery Sales 30 Dividends Cash 31 Salary and Wage Expense Salary and Wage Payable 444.00 444.00 45.00 45.00 27,000.00 27,000.00 2,500.00 2,500.00 480.00 480.00 52,248.00 52,248.00 Peyton Approved General Journal Entries Nov-14 Date Accounts 1 Accounts Payable Bakery Supplies Cash 5 Salary and Wage Payable Cash 7 Merchandise Inventory (10 x $6.00) Cash 10 Accounts Payable - Phone Cash 10 Baking Supplies Accounts Payable Debit 10,000.00 Credit 10,000.00 480.00 480.00 60.00 60.00 45.00 45.00 10,000.00 10,000.00 11 Misc Supplies Cash 300.00 15 Salary and wages expense salary and wages payable 420.00 15 Rent Expense Cash 300.00 420.00 1,500.00 1,500.00 15 Cash (8 x $8.50) Merchandise Sales 68.00 15 Cost of Goods Sold FIFO (8 x 6.00) Merchandise Inventory 48.00 15 Cost of Goods Sold FILO (8 x 6.00) Merchandise Inventory 48.00 15 Cost of Goods Sold WT Avg (8 x 6.00) Merchandise Inventory 48.00 68.00 48.00 48.00 48.00 20 Salary and Wage Payable Cash 420.00 20 Merchandise Inventory (20 x $6.10) Cash 122.00 30 Cost of Goods Sold FIFO (2 x $6.00) + (16 x $6. Merchandise Inventory 109.60 30 Cost of Goods Sold FILO (18 x $6.10) Merchandise Inventory 109.80 30 Cost of Goods Sold WT Avg (18 x $6.10) Merchandise Inventory 109.80 30 Telephone Expense Accounts Payable 30 Salary and wages expense salary and wages payable 30 Cash Bakery Sales 30 Cash Merchandise Sales 30 Dividends Cash 420.00 122.00 109.60 109.80 109.80 45.00 45.00 360.00 360.00 25,000.00 25,000.00 153.00 153.00 2,500.00 2,500.00 51,946.20 51,946.20 Peyton Approved General Journal Entries Dec-14 Date Accounts 1 Accounts Payable - Bakery Supplies Cash 1 Merchandise Inventory (25 x $6.05) Cash 4 Baking Supplies Accounts Payable Debit 10,000.00 Credit 10,000.00 151.25 151.25 12,000.00 12,000.00 5 Salary and Wage Payable Cash 360.00 8 Misc Supplies Cash 300.00 10 Accounts Payable - Phone Cash 14 Merchandise Inventory (30 x $6.00) Cash 15 Rent Expense Cash 360.00 300.00 45.00 45.00 180.00 180.00 1,500.00 1,500.00 15 Salary and Wage Expense Salary and Wage Payable 540.00 15 Cash Merchandise Sales (22 x $8.50) 187.00 15 Cost of Goods Sold FIFO (4 x $6.10) + (18 x $6.0 Merchandise Inventory 133.30 15 Cost of Goods Sold FILO (22 x $6.00) Merchandise Inventory 132.00 15 Cost of Goods Sold WT Avg (22 x $6.03) Merchandise Inventory 132.66 20 Salary and Wage Payable Cash 540.00 24 Cash Merchandise Sales (24 x $8.50) 204.00 24 Cost of Goods Sold FIFO (7 x $6.05) + (17 x $6.0 Merchandise Inventory 144.35 24 Cost of Goods Sold FILO (8 x $6.00) + (16 x $6.0 Merchandise Inventory 144.80 24 Cost of Goods Sold WT Avg (24 x $6.02) Merchandise Inventory 144.48 26 Merchandise Inventory (20 x $6.08) Cash 121.60 30 Telephone Expense accounts payable 30 Cash Bakery Sales 30 Dividends Cash 31 Salary and Wage Expense Salary and Wage Payable 540.00 187.00 133.30 132.00 132.66 540.00 204.00 144.35 144.80 144.48 121.60 45.00 45.00 30,000.00 30,000.00 2,500.00 2,500.00 480.00 480.00 To close Expense Accounts 59,985.44 59,985.44 Peyton Approved Adjusting Journal Entries 2014 A Date Accounts 31-Dec Depreciation Expense Debit 458.33 accumulated depreciation B C D E Credit 458.33 31-Dec Note Interest Expense Note Interest Payable 300.00 31-Dec Insurance Expense Prepaid Insurance 500.00 31-Dec Baking Supplies Expense Baking Supplies 31-Dec Misc Supplies Expense Misc Supplies 300.00 500.00 49,400.00 49,400.00 1,485.00 1,485.00 52,143.33 52,143.33 Baking Supplies 1,000.00 8,500.00 9,000.00 10,000.00 10,000.00 12,000.00 Purchased $ 50,500.00 Used 1,100.00 Remaining 49,400.00 Misc Supplies 300.00 325.00 310.00 300.00 300.00 $ 1,535.00 Purchased 1,485.00 Used 50.00 Remaining date Cash 1-Jul 3-Jul 31-Jul 30-Aug 30-Sep 30-Oct 15-Nov 30-Nov 30-Nov 15-Dec 24-Dec 30-Dec 15,000.00 10,000.00 5,000.00 20,000.00 22,500.00 27,000.00 68.00 25,000.00 153.00 187.00 204.00 30,000.00 155,112.00 87,692.15 11-Jul 375.00 250.00 200.00 1,000.00 300.00 3,000.00 1,200.00 120.00 45.00 1,500.00 480.00 300.00 8,500.00 420.00 45.00 1,500.00 325.00 456.00 2,000.00 9,000.00 480.00 45.00 310.00 1,500.00 444.00 2,500.00 10,000.00 480.00 60.00 45.00 300.00 1,500.00 420.00 122.00 2,500.00 10,000.00 151.25 360.00 300.00 45.00 180.00 1,500.00 540.00 121.60 2,500.00 date Notes Payable 10,000.00 date 3-Jul 10-Jul 10,000.00 Business License exp 375.00 375.00 375.00 Common Stock 15,000.00 5,000.00 12/31/2014 1-Jul 13-Jul 20,000.00 Insurance expense 600.00 600.00 600.00 600.00 - 31-Dec 12/31/2014 67,419.85 Misc. expense 250.00 250.00 250.00 - 14-Jul 8-Aug 10-Sep 12-Oct 10-Nov 4-Dec date 10-Jul 11-Jul 13-Jul 14-Jul 14-Jul 15-Jul 31-Jul 5-Aug 10-Aug 15-Aug 20-Aug 25-Aug 30-Aug 5-Sep 10-Sep 15-Sep 19-Sep 20-Sep 30-Sep 1-Oct 5-Oct 10-Oct 14-Oct 15-Oct 20-Oct 30-Oct 1-Nov 5-Nov 7-Nov 10-Nov 11-Nov 15-Nov 20-Nov 20-Nov 30-Nov 1-Dec 1-Dec 5-Dec 8-Dec 10-Dec 14-Dec 15-Dec 20-Dec 26-Dec 30-Dec ### 13-Jul 250.00 Baking supplies 1,000.00 49,400.00 8,500.00 9,000.00 10,000.00 10,000.00 12,000.00 50,500.00 49,400.00 1,100 Baking equipment 5,000.00 Advertising expense 13-Jul 200.00 5,000.00 ### 25-Aug 19-Sep 14-Oct 11-Nov 8-Dec 200.00 200.00 ### 9,000.00 9,000.00 ### 5,000.00 20,000.00 22,500.00 27,000.00 25,000.00 30,000.00 129,500.00 - 30-Aug 30-Aug 30-Sep 30-Oct 30-Nov 30-Dec 200.00 - Misc. supplies 300.00 1,485.00 325.00 310.00 300.00 300.00 1,535.00 1,485.00 50.00 50.00 31-Dec 15-Jul 15-Aug 15-Sep 15-Oct 15-Nov 15-Dec Rent expense 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 1,500.00 9,000.00 - Bakery revenue 15-Jul Prepaid rent 1,500.00 31-Jul 1,500.00 Prepaid insurance 1,200.00 600.00 1,200.00 600.00 31-Dec 600.00 31-Dec 10-Aug 30-Aug 10-Sep 1-Oct 10-Oct 1-Nov 10-Nov 1-Dec 10-Dec Accounts payable 45.00 45.00 8,500.00 8,500.00 45.00 45.00 9,000.00 9,000.00 45.00 45.00 10,000.00 10,000.00 45.00 45.00 10,000.00 10,000.00 45.00 45.00 12,000.00 45.00 37,725.00 49,770.00 12,045.00 30-Jul 8-Aug 30-Aug 10-Sep 30-Sep 12-Oct 30-Oct 10-Nov 30-Nov 4-Dec 30-Dec 42,216.00 42,231.00 42,247.00 42,262.00 42,277.00 42,292.00 42,308.00 42,323.00 42,338.00 42,353.00 42,369.00 ### 30-Jul 30-Aug 30-Sep 30-Oct 30-Nov 30-Dec Telephone expense 45.00 45.00 45.00 45.00 45.00 45.00 270.00 270.00 270.00 - Salary and wages expense 120.00 480.00 420.00 456.00 480.00 444.00 480.00 420.00 360.00 540.00 480.00 4,680.00 4,680.00 4,680 480.00 480.00 Salaries and wages payable 5-Aug 120.00 20-Aug 480.00 5-Sep 420.00 20-Sep 456.00 5-Oct 480.00 20-Oct 444.00 5-Nov 480.00 20-Nov 420.00 1-Dec 360.00 20-Dec 540.00 4,200.00 ### ### 30-Sep 30-Oct 30-Nov 30-Dec Dividends 2,000 2,500 2,500 2,500 458.33 - adj baking supplies expense 49,400.00 49,400.00 49,400.00 49,400.00 misc supplies expense 1,485.00 1,485.00 1,485.00 1,485.00 - adj 31-Dec Merchandise Sales Revenue 68.00 153.00 187.00 612.00 204.00 612.00 612.00 - 120.00 480.00 420.00 456.00 480.00 444.00 480.00 420.00 360.00 540.00 480.00 4,680.00 480.00 31-Jul 15-Aug 31-Aug 15-Sep 30-Sep 15-Oct 31-Oct 15-Nov 30-Nov 15-Dec 31-Dec ### depreciation expense 31-Dec 458.33 9,500 adj 129,500.00 129,500 ### ### 7-Nov 20-Nov 1-Dec 14-Dec 26-Dec Merch. Inv. FIFO 60.00 68.00 122.00 109.60 151.25 187.00 180.00 133.30 121.60 144.35 634.85 642.25 15-Nov 30-Nov 15-Dec 15-Dec 24-Dec 15-Nov 30-Nov 15-Dec 24-Dec 458.00 458.33 300 Merch. Inv. LIFO 7-Nov 60.00 20-Nov 122.00 1-Dec 151.25 14-Dec 180.00 26-Dec 121.60 634.85 15-Nov 30-Nov 15-Dec 24-Dec COGS LIFO 48.00 109.80 132.00 144.80 434.60 31-Dec 458.00 Interest expense 300 15-Nov 30-Nov 15-Dec 24-Dec COGS FIFO 48.00 109.60 133.30 144.35 435.25 acc dep Interest payable 300.00 adj 300 300 68.00 109.80 187.00 132.00 144.80 641.60 ### 300.00 15-Nov 30-Nov 15-Dec 15-Dec 24-Dec 7-Nov 20-Nov 1-Dec 14-Dec 26-Dec 15-Nov 30-Nov 15-Dec 24-Dec Merch. Inv. Weighted average 60.00 68.00 122.00 109.80 151.25 187.00 180.00 132.66 121.60 144.48 634.85 641.94 COGS Weighted average 48.00 109.80 132.68 144.48 434.96 15-Nov 30-Nov 15-Dec 15-Dec 24-Dec Account Cash Merchandise Inventory Beginning Baking Supplies Miscellaneous Supplies Prepaid Rent Prepaid Insurance Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries and Wages Payable Note Payable Note Interest Payable Common Stock Dividends Bakery Revenue Sales Revenue Purchases Rent Expense Salaries and Wages Expense Miscelleanous Expense Advertising Expense Telephone Expense Baking Supplies Expense Miscellaneous Supplies Expense Depreciation Expense Note Interest Expense Insurance Expense Business License Expense Peyton Approved Trial Balance 2014 Unadjusted trial balance Adjusting entries Debit Credit Debit Credit 87,692.15 50,500.00 49,400.00 1,535.00 1,485.00 1,500.00 1,200.00 500.00 5,000.00 458.33 12,045.00 480.00 10,000.00 300.00 20,000.00 9,500.00 129,500.00 612.00 634.85 9,000.00 4,680.00 250.00 200.00 270.00 49,400.00 1,485.00 458.33 300.00 500.00 375.00 172,337.00 172,637.00 52,143.33 52,143.33 Adjusted trial balance Debit Credit ### d e c 1,100.00 50.00 ### 700.00 ### a 458.33 ### ### ### 300.00 ### b ### ### ### d e a b c - 634.85 ### ### ### ### ### 49,400.00 1,485.00 458.33 300.00 500.00 ### 173,095.33 173,395.33 Peyton Approved Income Statement For the Year Ended 12/31/2014 Revenues: Bakery Revenue Cost of Goods Sold Gross Profit Operating Expenses: Salary Expense Advertising Expense Depreciation Expense Rent Expense Baking Supplies Administrative Expenses: Miscelleanous Expense Telephone Expense Miscellaneous Supplies Expense Note Interest Expense Insurance Expense Business License Expense Total Administrative Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses) Interest Expense Net Income $ $ $ 130,112 435 129,677 4,680 200 458 9,000 49,400 63,738 250 270 1,485 300 600 375 3,280 67,018 62,659 (300) $ (300) 62,359 Peyton Approved Statement of Retained Earnings For the Year Ended 12/31/2014 Retained Earnings, December 31, 2014 Net Income for Year Ended 12/31/2014 Dividends Retained Earnings, December 31, 2014 $ 62,359.00 63,093.67 (9,500.00) $53,593.67 Peyton Approved Balance Sheet For the Period Ended December 31, 2014 Assets Cash Merchandise Inventory Baking Supplies Miscellaneous Supplies Pre-Paid Rent Pre-Paid Insurance Baking Equipment Accumulated Depreciation $87,692 $635 1,100 50 1,500 600 - 5,000 458 $ 4,542 96,119 Liabilities and Owners' Equity Accounts Payable Salaries and Wages Payable Note Payable $ Stock Holders' Equity Common Stock Retained Earnings Total Stock Holders' Equity Total Liabilities and Stock Holders' Equity $ 12,045 480 10,000 22,525 $ 20,000 53,594 73,594 96,119 Peyton Approved Closing Entries 2014 Date Accounts 31 Bakery Revenue Sales Revenue Income Summary To close Revenue Accounts Debit 129,500.00 612.00 Credit 130,112.00 31 Income Summary Rent Expense Salaries and Wages Expense Misc Expense Advertising Expense Telephone Expense Baking Supplies Expense Miscellaneous Supplies Expense Depreciation Expense Note Interest Expense Insurance Expense Business License Expense To Close Expenses 67,018.33 31 Income Summary Retained Earnings To Close Income Summary 53,593.67 31 Retained Earnings Dividends To Close Dividends 9,000.00 4,680.00 250.00 200.00 270.00 49,400.00 1,485.00 458.33 300.00 600.00 375.00 53,593.67 9,500.00 9,500.00 Peyton Approved Post Closing Trial Balance 2014 Account Cash Merchandise Inventory Baking Supplies Miscellaneous Supplies Pre-Paid Rent Pre-Paid Insurance Baking Equipment Accumulated Depreciation Accounts Payable Salaries and Wages Payable Note Payable Common Stock Retained Earnings Total Unadjusted Trial Balance Debit Credit $87,692 $635 1,100 50 1,500 600 500 458.33 $ 12,045 480 10,000 20,000.00 49,093.52 92,076.85 92,076.85 Peyton Approved Reversing Entries 2014 Date Accounts 31 Salaries Expense Salaries Payable To Reverse Salaries Adjusting Entry Debit Credit 480 480.00 Method chosen = Date Bottles Purchase FIFO 7-Nov 10 6.00 15-Nov 20-Nov 20 6.10 Total Bottles 60.00 8 $ 182.00 6.05 6.00 6.08 Method chosen = Date Bottles Purchase LIFO 7-Nov 10 6.00 15-Nov 20-Nov 20 6.10 30-Nov 30 1-Dec 14-Dec 15-Dec 25 30 121.60 452.85 12.00 97.60 $ 157.60 6.10 6.05 24.40 108.90 6.05 6.00 42.35 102.00 46 $ 253.25 Sales Purchase Total 8 6.00 48.00 18 6.10 109.80 122.00 26 $ 109.80 151.25 180.00 22 20 75 6.08 121.60 $ 452.85 6.00 132.00 8 16 24-Dec 26-Dec 6.00 6.10 Total Bottles 60.00 $ 182.00 6.05 6.00 2 16 26 151.25 180.00 24-Dec 20 75 48.00 7 17 25 30 6.00 4 18 30 26-Dec Total 122.00 30-Nov 1-Dec 14-Dec 15-Dec Sales Purchase 6.00 6.05 48.00 96.80 46 $ 276.80 Method chosen = Sales Date Bottles Purchase Total Bottles Purchase WT. AVG 7-Nov 10 6.00 60.00 15-Nov 8 6.00 20-Nov 20 6.10 122.00 30-Nov 18 6.10 30 $ 182.00 26 $ 1-Dec 14-Dec 15-Dec 24-Dec 26-Dec 25 30 Total 48.00 109.80 109.80 6.05 $ 151.25 6.00 180.00 22 24 20 75 6.08 121.60 452.85 6.03 6.02 132.62 144.48 46 12.05 277.10 Ending Inventory Bottles Purchase Total 10 6.00 60.00 2 6.00 12.00 20 6.10 122.00 22 134.00 4 4 4 25 30 6.10 24.40 6.10 $ 24.40 6.10 24.40 6.05 151.25 6.00 180.00 7 30 6.05 6.00 42.35 180.00 13 20 33 6.00 6.08 78.00 121.6 $ 199.60 Ending Inventory Bottles Purchase Total 10 6.00 60.00 2 6.00 12.00 20 6.10 122.00 2 6.00 12.00 2 6.10 12.20 4 $ 24.20 25 30 2 2 25 8 6.05 6.00 6.00 6.10 6.05 6.00 151.25 180.00 12.00 12.20 151.25 48.00 9 2 2 20 33 6.05 6.10 6.00 6.08 54.45 12.20 12.00 121.60 $ 200.25 Ending Inventory Bottles Purchase Total 10 6.00 60.00 2 6.00 12.00 20 6.10 122.00 22 134.00 4 6.10 $ 24.40 25 30 59 37 13 20 33 6.05 $ 151.25 6.00 $ 180.00 355.65 6.02 222.74 6.02 78.26 6.08 121.60 199.86 6.09 6.03 6.02 6.06 Profitability ratios Gross Profit Margin Operating Profit Margin Return on total Assets Return on Stockholder's equity Liquidity Ratios Current Ratio Quick Ratio Working Capital Acid-test Ratio Accounts Receivable Turnover Inventory Turnover Days' sales uncollected Days' sales in inventory Total asset turnover Solvency Ratios Debt Ratio Debt to Equity Long-term debt to equity Ratio