July 2019:(using the Excel workbook complete the following

1 - Open a bank account for Peyton Approved.

1 - You take $15,000 from your personal savings account and buy common stock in Peyton Approved.

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.

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 1, 2019, first and last month's rent due at that time. Subsequent rents are due on the 15^thday of each month.(no entry- record this transaction on July 15^th, see below)

10 - Pay $375 to the county for a business license.

11 - Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipmentuse misc. exp.).

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.

13 - Pay $200 for business cards/flyers/posters/ads to use for advertising.

14 - Pay $1,000 for baking ingredients (use baking supplies account).

14 - Pay $300 for miscellaneous (use misc. supplies).

15 -Hire part-time helper to be paid $12 per hour. Pay periods are the 1^stthrough the 15^thand 16^ththrough the end of the month with paydays being the 20^thfor the first pay period and the 5^thof the following month for the second pay period.

15 - Pay first and last month's rent in cash. (1,500 January rent; January 2020 rent 1,500)

16 - Open the doors of the bakery.

31 - Pay $1,200 for a 12-month insurance policy beginning February 1, 2019

31- Record sales $5,000; $2,500 paid in cash remainder paid later

31- Received telephone bill, $45, will pay on 8/5 accrue invoice

The following events occur during the next 6 months:

August

• August 5 - pay accrued telephone bill
• August 8 - purchase Baking Supplieson credit $8,500
• August15 - accrue Salary 40 hours @ 12.00/per hour - will be paid on 8/20
• August 15 - customer paid $2,500 invoice from previous month
• August 15 -Pay in cash August Rent $1,500
• August 20 - Pay employees for August 1-15 accrued on 8/15
• August25 - purchase for cash $300 miscellaneous supplies
• August 31^st- record August sales $20,000 paid to Peyton in cash
• August 20^th- Record payment to employee
• August31^st- Accrue Salary 40 hours @ 12/per hour - will be paid 9/5
• August 31^st- Record telephone billfor $45, to be paid on 9/10

September 2019

• September 5 - Record payment to employee wages accrued on 8/31
• September 10 - Record payment of telephone bill accrued 8/31
• September 10^th- Record purchase of baking supplies on credit, $9,000
• September 15^{th -}Record rent payment
• September 15^th- Accrue w.e. 9/15 wages 38 hours @ 12.00/per hour
• September 15^th- Record payment of baking supplies purchased on 8/8
• September 19^th- Record cash paid for miscellaneous supplies $325
• September 20^th- Record payment of employee wages accrued on 9/15
• September 30^th- Record telephone bill received $45, not paid until 10/5
• September 30^th- Record sales $27,000 from customers paid to Peyton in cash
• September 30^th- Accrue w.e. 9/30 wages 40 hours @ 12/hr (pay to employees 10/5)

October 2019

• October 5^th-Pay telephone bill accrued 9/30
• October 10^th- Pay employees wages accrued 9/30
• October 12^th- Purchase on credit $10,000 baking supplies
• October 11^th-Record payment of baking supplies purchased on 9/10
• October 14^th- Record purchase of miscellaneous supplies $310 for cash
• October 15^th- Accrue wages for w.e. 10/15
• October 15^th- Pay in cash rent for October
• October 20^th-Pay employee wages accrued on 10/15
• October 30^th- Record bakery sales paid to Peyton in cash, $27,000
• October 30^th- Accrue wages 40 hours @ 12.00/hr
• October 30^th- Record receipt of telephone bill, $45, not paid until 11/5
• October 30^th- Record dividend payment $4,500

November 2019

• November 5^th- Pay telephone bill accrue 10/30
• November 10^th- Pay employee wages accrued on 10/30
• November 10^th- Pay baking supplies purchased on credit 10/12
• November 10^th- Purchase baking supplies on credit $10,000 due next month
• November 15th - Accrue wages for week ended 11/15 @ 35 hours 12.00/per hour
• November 15^th- Purchase for cash $300 miscellaneous supplies
• November 15^th-Paid November rent, $1,500 in cash
• November 15^th- Purchase 10 bottles (merchandise inventory) @ 6.00 each
• November 20^th- Sold 8 bottles $8.50 (record transaction assuming FIFO) for cash
• November 20^th- Purchase 20 bottles @ 6.05each for cash
• November20^th- Pay employees accrued on 11/15
• November 30^th- Sold18 bottles @ $8.50 each for cash
• November 30^th- Record telephone bill $45, paid 12/5
• November 30^th- Accrue wages w.e. 11/30 30 hours @ 12.00/hour
• November 30^th- Record November sales $25,000 received by Peyton in cash
• November 30^th- Pay owner dividends in cash $2.500

December 2019

• December 1^st- Purchased 25 bottles @ $6.05 each for cash
• December 4^th- Purchase on credit $12,000 baking supplies
• December 5^th- Pay employees accrue wages 11/30
• December 10^th- Pay telephone bill accrued on 11/30
• December 10^th- Record payment of baking supplies purchased on 11/10
• December 15^th- Accrue employee wages 45 hours (straight time) @12.00/hour
• December 15^th- Pay monthly rent in cash
• December 15^th- purchase miscellaneous supplies for cash $300
• December 15^th- Purchase for cash 30 bottles @ 6.00 each
• December 15^th- Sold 22 bottles @ $8.50 for cash ( use FIFO for inventory)
• December 20^th- Purchase for cash 20 bottles @ $6.08 each
• December 20^th- Pay employee wages accrued 12/15
• December 30^th- Sold 22 bottles @ 8$8.50 each (use FIFO)
• December 30^th- Record telephone bill $45 (due and paid next month)
• December 30^th- Record December bakery sales paid to Peyton in cash, $30,000
• December 31^st- Accrue employee wages for w.e. 12/31 @ 40 hours /12.00 hour
• December 31^st-Pay in cash $2,500 dividends to owner10/31

On December 31, the following adjustments must be made: (use the adjusting entry tab to record transactions - then transfer the entries to the trial balance adjusting entries column)

1. Depreciation of baking equipment transferred to company on 7/13. Assume month of depreciation in July using the straight-line method.
2. Accrue interest for note payable (Assume a full month of interest for July).
3. Record insurance used for the year.
4. An inventory of baking supplies shows $1,100 of supplies are remaining.
5. An inventory of misc. supplies shows $50 remaining.

Once the entries are recorded, using the specific tabs, complete the following tasks:

1. Complete the T-accounts (transfer the transactions to the appropriate accounts
2. Record the closing entries
3. Prepare the trial balance (unadjusted)
4. Complete the trial balance, with adjusting entries and the adjusted
5. Prepare the Income Statement
6. Prepare the Statement of Owner's equity
7. Prepare the Balance Sheet

Part 2:Written Report- Accounting Cycle Report

Draft a paper answering the following questions)

• Provide an overview of the company's accounting system. What basis of accounting is used? Why?
• What strategies is the business using to ensure responsible accounting practices? Why have these strategies been selected?
• Describe the steps in the accounting cycle.
• Define internal controls and discuss 1-2 controls and how they are relevant to the Peyton company
• Analyze the results of operations based on the financial statements. What do these results tell a business? e) What do the statements themselves tell about the strengths and weaknesses of the company's financial position?
• Discuss the changes in operations that might need to be made to make the company more profitable. Justify why each change may be necessary.
• What are the company's financial strengths and weaknesses? What specific changes can be made to alleviate the weaknesses?
• What opportunities can the company explore because of its strengths? How would these be beneficial?