our 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 owners 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.

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.

1. Income Statement: Prepare the income statement using the adjusted trial balance.

2. Statement of Owners Equity: Prepare the statement of owners equity using the adjusted trial balance.

3. Balance Sheet: Prepare the balance sheet using the adjusted trial balance.

4. Closing Entries: Complete the Closing Entries tab of the company accounting workbook by closing all temporary income statement amounts to create closing entries.

5. 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 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 companys financial health and performance.

   1. Purpose: What kind of information would these financial statements provide to various aspects of the business?

   2. Analysis: What is the companys cash position, its net income as a percentage of sales, and its current liabilities to current assets position?

Revenues Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold Gross Profit 60,000.00 221.00 60,221.00 157.60 60,063.40 Operating Expenses: Baking Supplies Expense Rent Expense Interest Expense Insurance Expense Depreciation Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense 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 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 Interest Expense Insurance Expense Depreciation Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense COGS Total: A Company Trial Balance 20xx Unadjusted trial balance Adjusting entries Adjusted trial balance Debit Credit Debit Credit Debit Credit 51,436.75 51,436.75 20,500.00 19,400.00 1,100.00 175.65 175.65 1,500.00 1,500.00 1,200.00 200.00 1,000.00 5,000.00 5,000.00 208.33 208.33 600.00 550.00 50.00 9,700.00 9,700.00 10,000.00 10,000.00 150.00 150.00 7,000.00 7,000.00 480.00 480.00 30,000.00 30,000.00 10,000.00 10,000.00 60,000.00 60,000.00 221.00 221.00 19,400.00 19,400.00 4,500.00 4,500.00 150.00 150.00 200.00 200.00 208.33 208.33 250.00 250.00 550.00 550.00 375.00 375.00 200.00 200.00 1,956.00 1,956.00 150.00 150.00 157.60 157.60 107,701.00 107,701.00 20,508.33 20,508.33 108,059.33 108,059.33 A Company Statement of Stockholder's Equity For Qtr. Ending 12/31/20xx Common Stock Retained Earnings Total Beginning Balances, September 30 0 0 Issued Common Stock 30,000.00 Net Income 32,124.07 Dividends (10,000.00) Ending Balances, December 31: 30,000.00 22,124.07 0 30,000.00 32,124.07 (10,000.00) 52,124.07 Balance Sheet As of December 31, 20XX 51,436.75 1,100.00 175.65 Assets Current Assets: Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Office Supplies Accounts Receivable Total Current Assets Liabilities and Owners' Equity Current Liabilities: Interest Payable Accounts Payable Wages Payable Total Current Liabilities 150.00 7,000.00 480.00 7,630.00 1,500.00 1,000.00 50.00 97,000.00 152,262.40 Long Term Liabilities: Notes Payable Total Long Term Liabilities: 10,000.00 10,000.00 Total Liabilities: 17,630.00 Shareholder's Equity: Common Stock Dividends 30,000.00 22,127.07 Non-Current Assets: Baking Equipment Accumulated Depreciation Baking Equipment (Net) Total Equity 52,127.07 Total Assets: 152,262.40 Total Liabilities & Equity 69,757.07 A Company Closing Entries Qtr ending 12/31/20xx Credit Date Accounts 31-Dec Bakery Sales Merchandise Sales Retained Earnings Debit 60,000.00 221.00 19,400.00 4,500.00 1,956.00 550.00 375.00 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 208.33 200.00 200.00 150.00 150.00 157.60 31-Dec Retained Earnings Dividends 32,124.07 10,000.00 A Company Post-Closing Trial Balance Qtr. Ending 12/31/20xx Unadjusted Trial Balance Debit Credit Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Office Supplies Accounts Receivable Accounts Payable Wages Payable Interest Payable Notes Payable Common Stock Retained Earnings Total A Company Adjusting Journal Entries 20XX Debit Credit 208.33 208.33 150.00 150.00 Date Accounts 31-Dec Depreciation Expense Accumulated Depreciation 31-Dec Interest Expense Interest Payable 31-Dec Interest Expense Prepaid Insurance 31-Dec Baking Supplies Expense Baking Supplies 31-Dec Office Supplies Expense Office Supplies 200.00 200.00 19,400.00 19,400.00 550.00 550.00