Just need Help with step 2 but provided Step one so you get a better idea

Step 1:

Complete the following in the July Journal Entries tab 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 You take $15,000 from your personal savings account and buy common stock in Peyton

Approved.

July 1-Purchase $8500 in baking supplies from vendor, on account

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 Pay $3000 toward lease agreement for bakery space. The agreement is for 1 year. The rent is $1,500 per month, last months rent was required at time of lease agreement. Lease period is effective July 1^st 2014 through June 30^th, 2015.

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, which 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 $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 15^th and 16^th through the end of the month with paydays being the 20^th for the first pay period and the 5^th of the following month for the second pay period. (No entry required on this date; for informational purposes only)

July 30- Received telephone bill for July in amount of $45. Payment is due on August 10^th

July 31 Pay $1,200 for a 12-month insurance policy. Policy effective dates August 1, 2014 through July 31^st, 2015

July 31- Accrue wages earned for employee for period of 16^th through 31st of July

(Wage calculations table is provided for you, below)

Total July bakery sales were $15,000. $5000 of these sales on accounts receivable

Step 2:

Complete the following transactions in the August Journal Entries tab in your workbook

August 5- paid employee for period ending 7/31

August 8-Receive payments from customers towards accounts receivable in amount of $3200.

August 10 paid July telephone bill

August 15- Purchase additional baking supplies in amount of $5000 from vendor, on account.

August 15 Accrue wages earned for employee from period of 1^st through 15^th of August

(Wage calculations table provided below)

August 15-Pay rent on bakery space $1500

August 18-Receive payments from customers towards accounts receivable in amount of $1000

August 20- paid $8500 toward baking supplies vendor payable

August 20- pay employee for period ending 8/15

August 22- $300 in misc. supplies purchased

August 31- received telephone bill for August in amount of $45. Payment is due on September 10^th.

August 31- Accrue wages earned for employee for period of August 16^th through August 31^st

(Wage calculations table provided below)

August bakery sales total $20,000. $7,500 of this total on accounts receivable.

Wage calculation data:

Month	Hours	Rate	Pay
31-Jul	10	12	120
15-Aug	40	12	480
31-Aug	35	12	420
15-Sep	38	12	456
30-Sep	40	12	480

	Cash	101	Notes Payable	201	Common Stock	301
	Baking Supplies	102	Accounts Payable	202	Dividends	302
	Prepaid Rent	103	Wages Payable	203
	Prepaid Insurance	104	Interest Payable	204
	Baking Equipment	105
	Misc. Supplies	106
	Accounts Receivable	107
	Accumulated Depreciation	108
	Merchandise Inventory	109			Revenue Accounts
	This chart of accounts should help you identify the appropriate accounts to record to as you are analyzing and journaling transactions for this workbook. There is nothing to complete on this page; this is simply a resource for you.					Acct #
					Bakery Sales	401
					Merchandise Sales	402
					Expense Accounts
						Acct #
					Baking Supplies Expense	501
					Rent Expense	502
					Insurance Expense	503
					Misc. Expense	504
					Business License Expense	505
					Advertising Expense	506
					Wages Expense	507
					Telephone Expense	508
					Interest Expense	509
					Depreciation Expense	510
					Misc. Supplies Expense	511
					Cost of Goods Sold	512