Listen Competencies In this project, you will demonstrate your mastery of the following competencies: Record and present financial information by applying the appropriate framework and guidelines of accounting for business transactions Determine asset accounts and their disclosure in the financial statements Determine liability and equity accounts and their disclosure in the financial statements Scenario You are a certified public accountant (CPA) who is working with a small bakery to prepare their financial statements for three months of the current fiscal year. Because the company is a startup and so small, the accounting is done manually in Microsoft Excel. You have been given the accounts and information you need to prepare their financial statements, but you will need to use the accounting cycle to report accurate information to the finance department. The business owners have also asked you to summarize the company's performance based on the financial statements Directions Company Accounting Workbook Use accepted accounting principles to follow and record your business transactions for a three-month period from the first step of the accounting cycle through the reporting process. You will build on your work from Milestones One and Two to complete your workbook using the Company Directions Company Accounting Workbook Use accepted accounting principles to follow and record your business transactions for a three-month period from the first step of the accounting cycle through the reporting process. You will build on your work from Milestones One and Two to complete your workbook using the Company Accounting Workbook Template (linked in the What to Submit section). Your completed accounting workbook will consist of journal entries for each transaction and postings of transactions to account ledgers. You will develop a trial balance from ledger balances and adjust revenue and expense accounts, as necessary, to ensure that revenues and expenses are reported in the appropriate period under the accrual accounting method. The adjusted trial balance will be used to prepare the income statement, the statement of owner's equity, and the balance sheet. After the preparation of the financial statements, closing entries will be entered to transfer earnings to equity and prepare temporary accounts for the new accounting period Use the instructions below to complete your workbook. 1. Record Financial Data: Use accepted accounting principles to accurately capture business transactions for October, November, and December using the data provided in the accounting data appendix (linked in the Supporting Materials section). You will need to address the following: A. Accuracy: Prepare entries that are accurate in that they fully reflect the appropriate information, 8. Completeness: Prepare entries that are complete for each month, including transferring posted entries to accounts C. Inventory Valuation: Prepare entries for the month of December to reflect the new line of products offered by the company, which includes using the data from the "inventory Valuation tab of the company accounting workbook 2. Accrual Basis: Apply the accrual basis of accounting and prepare adjusting entries to ensure accurate accounting for expenses that lack transactions in the current period. A Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the Trial Balance' tab of the company accounting workbook A 2. Accrual Basis: Apply the accrual basis of accounting and prepare adjusting entries to ensure accurate accounting for expenses that lack transactions in the current period. A. Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the Trial Balance" tab of the company accounting workbook ensuring that the total debits and credits match, B. Adjusting Entries: Prepare the "Adjusting Entries' tab of the company accounting workbook. C. Adjusted Trial Balance: Prepare the adjusted trial balance on the Trial Balance" tab, ensuring that the debit and credit totals match. 3. Financial Statements: Create financial statements using appropriate methods based on accepted accounting principles. Be sure to prepare these financial statements in the order listed, as there are important interdependencies among them A. Income Statement: Prepare the income statement using the adjusted trial balance. B. Statement of Owner's Equity: Prepare the statement of owner's equity using the adjusted trial balance. C. Balance Sheet: Prepare the balance sheet using the adjusted trial balance. D. Closing Entries: Complete the "Closing Entries' tab of the company accounting workbook by closing all temporary income statement amounts to create closing entries. E. Post-Closing Trial Balance: Prepare the "Post-Closing Trial Balance" tab of the company accounting workbook in preparation for the next accounting period Summary Report After you have completed preparing all the financial statements, analyze the statements and write a short report summarizirus your findings. Use the template provided in the What to Submit section to complete your report. 4. Summary: Write a summary of what the financial statements indicate about the company's financial health and performance A Purpose: What kind of information would these financial statements provide to various aspects of the business? B. Analysis: What is the company's cash position, its net income as a percentage of sales, and its current abilities to current assets Summary Report After you have completed preparing all the financial statements, analyze the statements and write a short report summarizing your finding the template provided in the What to Submit section to complete your report. 4. Summary: Write a summary of what the financial statements indicate about the company's financial health and performance. A. Purpose: What kind of information would these financial statements provide to various aspects of the business? B. Analysis: What is the company's cash position, its net income as a percentage of sales, and its current liabilities to current asse position? What to Submit To complete this project, you must submit the following: Company Accounting Workbook Your workbook should be completed and submitted as a Microsoft Excel file based on the template provided Project Summary Report Use this template to submit a 1. to 2-page Word document summarizing the financial statements you created Supporting Materials The following resources support your work on the project: moting transactions for the wood. There is nothing D Equity Accounts Ace A 201 Convon Stock 202 Dividends 203 Cont of Good Sold 2014 3301 300 01 Asset Accounts 4 Cash 6 Baking Supplies 7 Prepaid rent Prepard insurance 9 Baking quipment 10 Office Supplies 11 Accounts Receivable Accumulated Depreciation 15. Merchandise inventory 14 15 16 17 TO 19 20 21 22 Liability Accounts Acte 101 Notes Payable 302 Accounts Payable 103 Wages Payable 108 interest Payable 100 100 102 100 1on Revenue Accounts Aute Bakery Merchandise Sales Espente Account ANTE 501 Baking Supplies Expense Hent pense Expert Mic Expense Bescanse pe Adven Experte Warspense 35 508 500 Expense Accounts Acct # 501 502 503 504 505 506 Baking Supplies Expense Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Interest Expense Depreciation Expense Office Supplies Expense 507 508 509 510 511 General Journal Entries October, 20xx Date Accounts Credit Debit 25,000.00 1-Oct Cash Common Stock 25,000.00 8,500.00 1-Oct Baking Supplies Accounts Payable 8,500.00 10,000.00 3-OctCash Notes Payable 10,000.00 7-Oct Prepaid Rent Rent Expense Cash 1,500.00 1,500.00 3,000.00 375.00 10-Oct Business License Expense Cash 375.00 250.00 11-Oct Misc. Expense Cash 250.00 B D E 13-Oct Baking Equipment Common Stock G H 5,000.00 5,000.00 13-Oct Advertising Expense Cash 200.00 200.00 14-Oct Office Supplies Cash 300.00 300.00 30-Oct Telephone Expense Accounts Payable 75.00 75.00 31-Oct Prepaid Insurance Cash 1,200.00 1,200.00 120.00 31-Oct Wages Expense Wages Payable 120.00 31-Oct|Cash Accounts Receivable Bakery Sales 10,000.00 5,000.00 15,000.00 Total 69,020.00 69.020.00 Chart of Accounts October Journal Entries November Journal Entries December Journal Entries ... B 480.00 20-Nov Wages Payable Cash 480.00 300.00 22-Nov Office Supplies Cash 300.00 75.00 30-Nov Telephone Expense Accounts Payable 75.00 420.00 30-Nov Wages Expense Wages Payable 420.00 30-Nov Cash Accounts Receivable Bakery Sales 12,500.00 7,500.00 20,000.00 Total 41,750.00 41,750.00 153.00 24-Dec Cash Merchandise Sales 153.00 109.60 24-Dec Cost of Goods Sold Merchandise Inventory 109.60 151.25 30-Dec Merchandise Inventory Cash 151.25 480.00 31-Dec Wages Expense Wages Payable 480.00 31-Dec Cash Accounts Receivable Bakery Sales 19,000.00 6,000.00 25,000.00 Total 53,098.85 53,098.85 date date date 1-Oct 3-Oct Cash 25,000.00 10,000.00 Notes Payable WWW date 3 Oct Business Licenseep 10-Oct 375.00 Common stoc 25.000 5.000 1-Oct 13.00 30.000 3,000.00 375.00 250.00 200.00 300.00 1,200.00 7-Oct 10-Oct 11-Oct 13 Oct 14 Oct 31-Oct 31-Oct 10,000.00 120,00 5-Nov 8-Nov 3.800.00 75.00 10-Nov 18-Nov 1.000.00 Insurance expense 1,500.00 8.500.00 480.00 300,00 15 NOV 20-Nov 20-NOV 22-Nov B-NOV 1-Nov 30-NOV Accounts Rec 31 Oct 5,000.00 3.500.00 1.000.00 30-Nov 7.500.00 4.000.00 31-Dec 6,000.00 12,500.00 3-Dec 10,000.00 420.00 60.00 3-Dec 5.Det 7-Dec & Dec 4.000.00 75.00 10-Dec 5,000.00 13-Dec recebe TASO 3.000 57001 Taccounts auto wory No. of Date Item 7-Dec Pure No. of Total Price tems 30 S 6.005 60.00 Sales Ending inventory No. of Unit Price Total Prices Total Price 30 $6.00 $0.00 De Merchandisine y10 36 ca Panventory 15-Dec 356.005 300 255.00 12700 20-Dec 20 3 105 122.00 L. 2 $5.00 5 12.00 20 SA 105 122.00 $ 1100 IS-De Gush 18SXSSY Merchandise Sales Record sale of inventory 100 24-Dec 256.00 $12.00 16 $105 18 5 103.60 5610S 25 Dec cost of Good Son X Merchande vetor Recorded the cost of toodsto 30 Dec 25 $ 6.3 1512 122.00 20-De Merchandise ventory 20 300 # $ 1050 556.05.151.5 $17.65 Net inventor 15100 5 335 55 25 $ 157.00 $ 517300 20 Dee Cash Merchand Sales Revenue Secondo intory 151.00 24 Dec costosos 08.00 _00 -00 Merchandise Sales Revenue Record sale of inventory 48.00 -40 15-Dec Cost of Goods Sold (8 X $6) Merchandise Inventory Recorded the cost of goods sold 48.00 122.00 -40 -25 -65 20-Dec Merchandise Inventory (20 x $6.10 ) Cash 122.00 153.00 -65 153.00 24-Dec Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 109.60 109.60 24-Dec Cost of Goods Sold (2 x $6)+(16 x $6.10) Merchandise Inventory Recorded the cost of goods sold 151.25 30-Dec Merchandise Inventory (25 x $6.05) Cash 151.25 A Company Trial Balance 20xx Unadjusted trial balance Debit Credit 51,436.75 20,500.00 175.65 1,500.00 1,200.00 5,000.00 600.00 9,700.00 Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Office Supplies Accounts Receivable Notes Payable Interest Payable Accounts Payable Wages Payable Common Stock Dividends Bakery Sales Merchandise Sales Baking Supplies Expense Rent Expense Adjusting entries Adjusted trial balance Debit Credit Debit Credit 51,436.75 19,400.00 1,100.00 175.65 1,500.00 200.00 1,000.00 5,000.00 208.33 208.33 550.00 50.00 9,700.00 10,000.00 150.00 150.00 7,000.00 480.00 30,000.00 10,000.00 60,000.00 221.00 19,400.00 19,400.00 4,500.00 10,000.00 7,000.00 480.00 30,000.00 10,000.00 60,000.00 221.00 4,500.00 Trial Balance T-Accounts - autofill Inventory Valuation Income Statement Adjusting Entries Debit Credit 5 208.33 6 7 208.33 150.00 8 150.00 9 0 Date Accounts 31-Dec Depreciation Expense Accumulated Depreciation 31-Dec Interest Expense Interest Payable 31-Dec Insurance Expense Prepaid Insurance 31-Dec Baking Supplies Expense Baking Supplies 31-Dec Office Supplies Expense Office Supplies 200.00 200.00 1 19,400.00 19,400.00 2 3 4 5 550.00 550.00 20,508.33 20,508.33 A B D 12 Operating Expenses: 13 Baking Supplies Expense 14 Rent Expense 15 Interest Expense 16 Insurance Expense 17 Depreciation Expense 18 Misc. Expense 19 Office Supplies Expense 20 Business License Expense 21 Advertising Expense 22 Wages Expense 23 Telephone Expense 24 25 26 19,400.00 4,500.00 150.00 200.00 208.33 250,00 550.00 375.00 200.00 1,956.00 150.00 27 28 27,939.33 29 30 Total Operating Expenses: 31 32 Net Income 32,124.07 33 34 25 FI A B D 1 A Company 2 Statement of Stockholder's Equity 3 For Qtr. Ending 12/31/20xx 4 Common Stock Retained Earnings Total 5 Beginning Balances, September 30 0 0 6 Issued Common Stock 30,000.00 30,000 7 Net Income 32,124.07 32,124 8 Dividends (10,000.00) (10,000 9 Ending Balances, December 31: 30,000.00 22,124.07 52,124 10 11 12 3 4 5 6 7 3 Summary Report After you have completed preparing all the financial statements, analyze the statements and write a short report summarizing your findings Use the template provided in the What to Submit section to complete your report. 4. Summary: Write a summary of what the financial statements indicate about the company's financial health and performance A. Purpose: What kind of information would these financial statements provide to various aspects of the business? B. Analysis: What is the company's cash position, its net income as a percentage of sales, and its current liabilities to current assets position? What to Submit B D E F 3 Credit Debit 60,000.00 221.00 60,221.00 28,096.93 1 2 A Company Closing Entries 4 Qtr ending 12/31/20xx 5 6 Date Accounts 7 31-Dec Bakery Sales 3 Merchandise Sales Retained Earnings 0 1 31-Dec Retained Earnings 2 Baking Supplies Expense Rent Expense 4 Wages Expense 5 Office Supplies Expense 5 Business License Expense 7 Office Expense 3 Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Statement of Stockholder Equity 3 157.60 19,400.00 4,500.00 200.00 208.33 250.00 550.00 375.00 200.00 1,956.00 150.00 Closing Entries Post-Closing Trial Ba Balance Sheet B D 28,096.93 31-Dec Retained Earnings Baking Supplies Expense Rent Expense Wages Expense Office Supplies Expense Business License Expense Office Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense COGS 157.60 19,400.00 4,500.00 200.00 208.33 250.00 550.00 375.00 200.00 1,956.00 150.00 150.00 10,000.00 31-Dec Retained Earnings Dividends 10,000.00 1 2 A Company Post-Closing Trial Balance Qtr. Ending 12/31/20xx 3 4 5 Account 6 Cash 7 Baking Supplies 8 Merchandise Inventory 9 Prepaid Rent 10 Prepaid Insurance 11 Baking Equipment 12 Accumulated Depreciation 13 Office Supplies 14 Accounts Receivable 15 Accounts Payable 16 Wages Payable 17 Interest Payable 18 Notes Payable 19 Common Stock 20 Retained Earnings 21 22 Total Unadjusted Trial Balance Debit Credit 51,436.75 1,100.00 175.65 1,500.00 1,000.00 5,000.00 208.33 50.00 9,700.00 1,000.00 7,000.00 5,000.00 480.00 150.00 10,000.00 30,000.00 22,124.07 69,962.40 69,962.40 Dort Cincin Trial Balance Listen Competencies In this project, you will demonstrate your mastery of the following competencies: Record and present financial information by applying the appropriate framework and guidelines of accounting for business transactions Determine asset accounts and their disclosure in the financial statements Determine liability and equity accounts and their disclosure in the financial statements Scenario You are a certified public accountant (CPA) who is working with a small bakery to prepare their financial statements for three months of the current fiscal year. Because the company is a startup and so small, the accounting is done manually in Microsoft Excel. You have been given the accounts and information you need to prepare their financial statements, but you will need to use the accounting cycle to report accurate information to the finance department. The business owners have also asked you to summarize the company's performance based on the financial statements Directions Company Accounting Workbook Use accepted accounting principles to follow and record your business transactions for a three-month period from the first step of the accounting cycle through the reporting process. You will build on your work from Milestones One and Two to complete your workbook using the Company Directions Company Accounting Workbook Use accepted accounting principles to follow and record your business transactions for a three-month period from the first step of the accounting cycle through the reporting process. You will build on your work from Milestones One and Two to complete your workbook using the Company Accounting Workbook Template (linked in the What to Submit section). Your completed accounting workbook will consist of journal entries for each transaction and postings of transactions to account ledgers. You will develop a trial balance from ledger balances and adjust revenue and expense accounts, as necessary, to ensure that revenues and expenses are reported in the appropriate period under the accrual accounting method. The adjusted trial balance will be used to prepare the income statement, the statement of owner's equity, and the balance sheet. After the preparation of the financial statements, closing entries will be entered to transfer earnings to equity and prepare temporary accounts for the new accounting period Use the instructions below to complete your workbook. 1. Record Financial Data: Use accepted accounting principles to accurately capture business transactions for October, November, and December using the data provided in the accounting data appendix (linked in the Supporting Materials section). You will need to address the following: A. Accuracy: Prepare entries that are accurate in that they fully reflect the appropriate information, 8. Completeness: Prepare entries that are complete for each month, including transferring posted entries to accounts C. Inventory Valuation: Prepare entries for the month of December to reflect the new line of products offered by the company, which includes using the data from the "inventory Valuation tab of the company accounting workbook 2. Accrual Basis: Apply the accrual basis of accounting and prepare adjusting entries to ensure accurate accounting for expenses that lack transactions in the current period. A Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the Trial Balance' tab of the company accounting workbook A 2. Accrual Basis: Apply the accrual basis of accounting and prepare adjusting entries to ensure accurate accounting for expenses that lack transactions in the current period. A. Unadjusted Trial Balance: Prepare the unadjusted trial balance portion of the Trial Balance" tab of the company accounting workbook ensuring that the total debits and credits match, B. Adjusting Entries: Prepare the "Adjusting Entries' tab of the company accounting workbook. C. Adjusted Trial Balance: Prepare the adjusted trial balance on the Trial Balance" tab, ensuring that the debit and credit totals match. 3. Financial Statements: Create financial statements using appropriate methods based on accepted accounting principles. Be sure to prepare these financial statements in the order listed, as there are important interdependencies among them A. Income Statement: Prepare the income statement using the adjusted trial balance. B. Statement of Owner's Equity: Prepare the statement of owner's equity using the adjusted trial balance. C. Balance Sheet: Prepare the balance sheet using the adjusted trial balance. D. Closing Entries: Complete the "Closing Entries' tab of the company accounting workbook by closing all temporary income statement amounts to create closing entries. E. Post-Closing Trial Balance: Prepare the "Post-Closing Trial Balance" tab of the company accounting workbook in preparation for the next accounting period Summary Report After you have completed preparing all the financial statements, analyze the statements and write a short report summarizirus your findings. Use the template provided in the What to Submit section to complete your report. 4. Summary: Write a summary of what the financial statements indicate about the company's financial health and performance A Purpose: What kind of information would these financial statements provide to various aspects of the business? B. Analysis: What is the company's cash position, its net income as a percentage of sales, and its current abilities to current assets Summary Report After you have completed preparing all the financial statements, analyze the statements and write a short report summarizing your finding the template provided in the What to Submit section to complete your report. 4. Summary: Write a summary of what the financial statements indicate about the company's financial health and performance. A. Purpose: What kind of information would these financial statements provide to various aspects of the business? B. Analysis: What is the company's cash position, its net income as a percentage of sales, and its current liabilities to current asse position? What to Submit To complete this project, you must submit the following: Company Accounting Workbook Your workbook should be completed and submitted as a Microsoft Excel file based on the template provided Project Summary Report Use this template to submit a 1. to 2-page Word document summarizing the financial statements you created Supporting Materials The following resources support your work on the project: moting transactions for the wood. There is nothing D Equity Accounts Ace A 201 Convon Stock 202 Dividends 203 Cont of Good Sold 2014 3301 300 01 Asset Accounts 4 Cash 6 Baking Supplies 7 Prepaid rent Prepard insurance 9 Baking quipment 10 Office Supplies 11 Accounts Receivable Accumulated Depreciation 15. Merchandise inventory 14 15 16 17 TO 19 20 21 22 Liability Accounts Acte 101 Notes Payable 302 Accounts Payable 103 Wages Payable 108 interest Payable 100 100 102 100 1on Revenue Accounts Aute Bakery Merchandise Sales Espente Account ANTE 501 Baking Supplies Expense Hent pense Expert Mic Expense Bescanse pe Adven Experte Warspense 35 508 500 Expense Accounts Acct # 501 502 503 504 505 506 Baking Supplies Expense Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Interest Expense Depreciation Expense Office Supplies Expense 507 508 509 510 511 General Journal Entries October, 20xx Date Accounts Credit Debit 25,000.00 1-Oct Cash Common Stock 25,000.00 8,500.00 1-Oct Baking Supplies Accounts Payable 8,500.00 10,000.00 3-OctCash Notes Payable 10,000.00 7-Oct Prepaid Rent Rent Expense Cash 1,500.00 1,500.00 3,000.00 375.00 10-Oct Business License Expense Cash 375.00 250.00 11-Oct Misc. Expense Cash 250.00 B D E 13-Oct Baking Equipment Common Stock G H 5,000.00 5,000.00 13-Oct Advertising Expense Cash 200.00 200.00 14-Oct Office Supplies Cash 300.00 300.00 30-Oct Telephone Expense Accounts Payable 75.00 75.00 31-Oct Prepaid Insurance Cash 1,200.00 1,200.00 120.00 31-Oct Wages Expense Wages Payable 120.00 31-Oct|Cash Accounts Receivable Bakery Sales 10,000.00 5,000.00 15,000.00 Total 69,020.00 69.020.00 Chart of Accounts October Journal Entries November Journal Entries December Journal Entries ... B 480.00 20-Nov Wages Payable Cash 480.00 300.00 22-Nov Office Supplies Cash 300.00 75.00 30-Nov Telephone Expense Accounts Payable 75.00 420.00 30-Nov Wages Expense Wages Payable 420.00 30-Nov Cash Accounts Receivable Bakery Sales 12,500.00 7,500.00 20,000.00 Total 41,750.00 41,750.00 153.00 24-Dec Cash Merchandise Sales 153.00 109.60 24-Dec Cost of Goods Sold Merchandise Inventory 109.60 151.25 30-Dec Merchandise Inventory Cash 151.25 480.00 31-Dec Wages Expense Wages Payable 480.00 31-Dec Cash Accounts Receivable Bakery Sales 19,000.00 6,000.00 25,000.00 Total 53,098.85 53,098.85 date date date 1-Oct 3-Oct Cash 25,000.00 10,000.00 Notes Payable WWW date 3 Oct Business Licenseep 10-Oct 375.00 Common stoc 25.000 5.000 1-Oct 13.00 30.000 3,000.00 375.00 250.00 200.00 300.00 1,200.00 7-Oct 10-Oct 11-Oct 13 Oct 14 Oct 31-Oct 31-Oct 10,000.00 120,00 5-Nov 8-Nov 3.800.00 75.00 10-Nov 18-Nov 1.000.00 Insurance expense 1,500.00 8.500.00 480.00 300,00 15 NOV 20-Nov 20-NOV 22-Nov B-NOV 1-Nov 30-NOV Accounts Rec 31 Oct 5,000.00 3.500.00 1.000.00 30-Nov 7.500.00 4.000.00 31-Dec 6,000.00 12,500.00 3-Dec 10,000.00 420.00 60.00 3-Dec 5.Det 7-Dec & Dec 4.000.00 75.00 10-Dec 5,000.00 13-Dec recebe TASO 3.000 57001 Taccounts auto wory No. of Date Item 7-Dec Pure No. of Total Price tems 30 S 6.005 60.00 Sales Ending inventory No. of Unit Price Total Prices Total Price 30 $6.00 $0.00 De Merchandisine y10 36 ca Panventory 15-Dec 356.005 300 255.00 12700 20-Dec 20 3 105 122.00 L. 2 $5.00 5 12.00 20 SA 105 122.00 $ 1100 IS-De Gush 18SXSSY Merchandise Sales Record sale of inventory 100 24-Dec 256.00 $12.00 16 $105 18 5 103.60 5610S 25 Dec cost of Good Son X Merchande vetor Recorded the cost of toodsto 30 Dec 25 $ 6.3 1512 122.00 20-De Merchandise ventory 20 300 # $ 1050 556.05.151.5 $17.65 Net inventor 15100 5 335 55 25 $ 157.00 $ 517300 20 Dee Cash Merchand Sales Revenue Secondo intory 151.00 24 Dec costosos 08.00 _00 -00 Merchandise Sales Revenue Record sale of inventory 48.00 -40 15-Dec Cost of Goods Sold (8 X $6) Merchandise Inventory Recorded the cost of goods sold 48.00 122.00 -40 -25 -65 20-Dec Merchandise Inventory (20 x $6.10 ) Cash 122.00 153.00 -65 153.00 24-Dec Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 109.60 109.60 24-Dec Cost of Goods Sold (2 x $6)+(16 x $6.10) Merchandise Inventory Recorded the cost of goods sold 151.25 30-Dec Merchandise Inventory (25 x $6.05) Cash 151.25 A Company Trial Balance 20xx Unadjusted trial balance Debit Credit 51,436.75 20,500.00 175.65 1,500.00 1,200.00 5,000.00 600.00 9,700.00 Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Office Supplies Accounts Receivable Notes Payable Interest Payable Accounts Payable Wages Payable Common Stock Dividends Bakery Sales Merchandise Sales Baking Supplies Expense Rent Expense Adjusting entries Adjusted trial balance Debit Credit Debit Credit 51,436.75 19,400.00 1,100.00 175.65 1,500.00 200.00 1,000.00 5,000.00 208.33 208.33 550.00 50.00 9,700.00 10,000.00 150.00 150.00 7,000.00 480.00 30,000.00 10,000.00 60,000.00 221.00 19,400.00 19,400.00 4,500.00 10,000.00 7,000.00 480.00 30,000.00 10,000.00 60,000.00 221.00 4,500.00 Trial Balance T-Accounts - autofill Inventory Valuation Income Statement Adjusting Entries Debit Credit 5 208.33 6 7 208.33 150.00 8 150.00 9 0 Date Accounts 31-Dec Depreciation Expense Accumulated Depreciation 31-Dec Interest Expense Interest Payable 31-Dec Insurance Expense Prepaid Insurance 31-Dec Baking Supplies Expense Baking Supplies 31-Dec Office Supplies Expense Office Supplies 200.00 200.00 1 19,400.00 19,400.00 2 3 4 5 550.00 550.00 20,508.33 20,508.33 A B D 12 Operating Expenses: 13 Baking Supplies Expense 14 Rent Expense 15 Interest Expense 16 Insurance Expense 17 Depreciation Expense 18 Misc. Expense 19 Office Supplies Expense 20 Business License Expense 21 Advertising Expense 22 Wages Expense 23 Telephone Expense 24 25 26 19,400.00 4,500.00 150.00 200.00 208.33 250,00 550.00 375.00 200.00 1,956.00 150.00 27 28 27,939.33 29 30 Total Operating Expenses: 31 32 Net Income 32,124.07 33 34 25 FI A B D 1 A Company 2 Statement of Stockholder's Equity 3 For Qtr. Ending 12/31/20xx 4 Common Stock Retained Earnings Total 5 Beginning Balances, September 30 0 0 6 Issued Common Stock 30,000.00 30,000 7 Net Income 32,124.07 32,124 8 Dividends (10,000.00) (10,000 9 Ending Balances, December 31: 30,000.00 22,124.07 52,124 10 11 12 3 4 5 6 7 3 Summary Report After you have completed preparing all the financial statements, analyze the statements and write a short report summarizing your findings Use the template provided in the What to Submit section to complete your report. 4. Summary: Write a summary of what the financial statements indicate about the company's financial health and performance A. Purpose: What kind of information would these financial statements provide to various aspects of the business? B. Analysis: What is the company's cash position, its net income as a percentage of sales, and its current liabilities to current assets position? What to Submit B D E F 3 Credit Debit 60,000.00 221.00 60,221.00 28,096.93 1 2 A Company Closing Entries 4 Qtr ending 12/31/20xx 5 6 Date Accounts 7 31-Dec Bakery Sales 3 Merchandise Sales Retained Earnings 0 1 31-Dec Retained Earnings 2 Baking Supplies Expense Rent Expense 4 Wages Expense 5 Office Supplies Expense 5 Business License Expense 7 Office Expense 3 Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Statement of Stockholder Equity 3 157.60 19,400.00 4,500.00 200.00 208.33 250.00 550.00 375.00 200.00 1,956.00 150.00 Closing Entries Post-Closing Trial Ba Balance Sheet B D 28,096.93 31-Dec Retained Earnings Baking Supplies Expense Rent Expense Wages Expense Office Supplies Expense Business License Expense Office Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense COGS 157.60 19,400.00 4,500.00 200.00 208.33 250.00 550.00 375.00 200.00 1,956.00 150.00 150.00 10,000.00 31-Dec Retained Earnings Dividends 10,000.00 1 2 A Company Post-Closing Trial Balance Qtr. Ending 12/31/20xx 3 4 5 Account 6 Cash 7 Baking Supplies 8 Merchandise Inventory 9 Prepaid Rent 10 Prepaid Insurance 11 Baking Equipment 12 Accumulated Depreciation 13 Office Supplies 14 Accounts Receivable 15 Accounts Payable 16 Wages Payable 17 Interest Payable 18 Notes Payable 19 Common Stock 20 Retained Earnings 21 22 Total Unadjusted Trial Balance Debit Credit 51,436.75 1,100.00 175.65 1,500.00 1,000.00 5,000.00 208.33 50.00 9,700.00 1,000.00 7,000.00 5,000.00 480.00 150.00 10,000.00 30,000.00 22,124.07 69,962.40 69,962.40 Dort Cincin Trial Balance
