Overview: In this milestone, you will move through the first four steps of Final Project I by creating the monthly journal entries and general ledger accounts in your accounting workbook. The monthly journal entries are how businesses input financial activities into their accounting systems. The values from these entries are posted to the general ledger. Prompt: Your dog, Peyton, has severe allergies and cannot have the usual store-bought dog treats. You have been making homemade treats for him that are allnatural and hypoallergenic. Over the past year, you have been making and selling these treats out of your home, and you have been quite successful. You now have an opportunity to open your own dog treat bakery. You have decided on a corporate form of business and have named your company "Peyton Approved." To complete Milestone One, use accepted accounting principles to follow and record your business transactions for a three-month period. You will find the provided data for your workbook in the appendix at the end of this document. The data have been separated from the prompt so that you can more easily view the full scope of the assignment. Links have been provided to help you locate the information you need as you move through each step. Specifically, the following critical elements must be addressed:

Excel File Edit View Insert Format Tools Data Window Help 4 8 7 96% Sun 8:18 PM Q O.. AutoSave . OFF 1 ACC 201 Final Project Workbook EXCEL # Cart - Beaut G beaut G townh + Home Insert Draw Page Layout Formulas Data Review View Share Comments =0&ou=296595 Aria 12 " A A" = ab v % Conditional Formatting v Format as Table Paste BIUVV LAV Number Cell Styles v Cells Editing Ideas Sensitivity B2 4 X v fx | Print this page to use for your journal entries. Only accounts on this page can be used B D E F G H Print this page to use for your journal entries. Only accounts on this page can be used. Asset Accounts Liability Accounts Equity Accounts Acct Acct # Acct # 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 10 Baking Equipment 105 Office Supplies 106 Accounts Receivable 107 Accumulated Depreciation 108 Merchandise Inventory 109 Revenue Accounts Acct # 16 Bakery Sales 401 Merchandise Sales 402 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. 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 Office Supplies Expense 511 Cost of Goods Sold 512 1 23 33 38 the "July Journal Entries" tab Chart of Accounts July Journal Entries August Journal Entries September Journal Entries Inventory Valuation T-Accounts + Ready + 100% NOV 24 atv X W OExcel File Edit View Insert Format Tools Data Window Help $ 96% Sun 8:18 PM Q AutoSave . OFF 1 ACC 201 Final Project Workbook EXCEL Cart - Beaut G beaut G townh + Home Insert Draw Page Layout Formulas Data Review View Share Comments =0&ou=296595 Calibri 11 " A A " = = ab v Conditional Formatting v Number Format as Table v Paste BIUVV LAV Cell Styles v Cells Editing Ideas Sensitivity A1 + X V fx B C D E G H K L M Peyton Approved General Journal Entries Put entries in shaded cells Aug-1 Date Accounts Debit Credit 10 34 35 the "July Journal Entries" tab Chart of Accounts July Journal Entries August Journal Entries September Journal Entries Inventory Valuation T-Accounts + Ready + 100% NOV 24 tv X W OExcel File Edit View Insert Format Tools Data Window Help $ 96% Sun 8:19 PM Q AutoSave . OFF 1 ACC 201 Final Project Workbook EXCEL Cart - Beaut G beaut G townh + Home Insert Draw Page Layout Formulas Data Review View Share Comments =0&ou=296595 Aria 12 " AA = = ab v Conditional Formatting v Number Format as Table v Paste BIU VOVAv Cell Styles v Cells Editing Ideas Sensitivity B6 + X V fx B C D E F G H K Peyton Approved General Journal Entries Put entries in shaded cells Sep-18 Date Accounts Debit Credit D CO 1 23 33 35 the "July Journal Entries" tab Chart of Accounts July Journal Entries August Journal Entries September Journal Entries Inventory Valuation T-Accounts + Ready + 100% NOV 24 tv X W OExcel File Edit View Insert Format Tools Data Window Help $ 96% Sun 8:19 PM Q O.. AutoSave . OFF 1 ACC 201 Final Project Workbook EXCEL Cart - Beaut G beaut G townh + Home Insert Draw Page Layout Formulas Data Review View Share Comments =0&ou=296595 Calibri 11 A A ab v Conditional Formatting v Format as Table Paste BIU VOVAv Number Cell Styles v Cells Editing Ideas Sensitivity 0114 + X V fx B C D E F G H K M N 0 P Q R 2 ate Cash date date Notes Payable date Business License exp Common Stock 1-Jul 3-Jul 10-Ju 1-Jul 3-Jul 13-Jul 7-Jul 10-Jul Balance Balance Balance 11-Jul 13-Jul 14-Jul 10 31-Jul 11 31-Jul 5-Aug 13 8-Aug 14 10-Aug 15 18-Aug 16 15-Aug 17 20-Aug Accounts Rec. Insurance expense 18 20-Aug 31-Jul 19 22-Aug 8-Aug 20 31-Aug 18-Aug 1-Sep 31-Aug 5-Sep 3-Sep 7-Sep 30-Sep 8-Sep 25 10-Sep 26 13-Sep Balance 27 15-Sep 28 15-Sep 29 20-Sep 30 31 20-Sep 32 24-Sep 33 30-Sep 34 30-Sep 35 1 23 33 36 37 alance the "July Journal Entries" tab Chart of Accounts July Journal Entries August Journal Entries September Journal Entries Inventory Valuation T-Accounts + Ready + 100% NOV 24 tv X W OExcel File Edit View Insert Format Tools Data Window Help $ 96% Sun 8:19 PM Q O.. AutoSave . OFF 1 ACC 201 Final Project Workbook EXCEL Cart - Beaut G beaut G townh + Home Insert Draw Page Layout Formulas Data Review View Share Comments =0&ou=296595 Calibri 11 = = ab v Conditional Formatting v = Format as Table Paste BIU VOVAv Number Cell Styles v Cells Editing Ideas Sensitivity N84 4 x v fx Merchandise Inventory B G H K L M N IS WN FIFO USE THIS ONE FOR THE SEPTEMBER ENTRIES Date Purchases Sale Ending Inventory Or 7-Sep 10 $ 6.00 $ 60.00 10 $ 6.00 $ 60.00 7-Sep Merchandise Inventory (10 x $6) 60 Cash 15-Sep 8 $ 6.00 $ 48.00 2 $ 6.00 $ 12.00 Purchased inventory 20-Sep 20 $ 6.10 $ 122.00 2 $ 6.00 $ 12.00 15-Sep Cash (8 x $8.50) 68 10 20 $ 6.10 $ 122.00 Merchandise Sales 22 134.00 Record sale of inventory 12 13 24-Sep 2 $ 6.00 $ 12.00 15-Sep Cost of Goods Sold 48 14 16 $ 6.10 $ 97.60 4 $ 6.10 $ 24.40 Merchandise Inventory 15 S 109.60 Recorded the cost of goods sold 16 17 30-Sep 25 $ 6.05 $ 151.25 4 5 6.10 $ 24.40 20-Sep Merchandise Inventory (20 x $6.10 ) 122 18 25 $ 6.05 $ 151.25 Cash 19 29 175.65 20 55 $ 333.25 26 $ 157.60 29 $ 175.65 24-Sep Cash (18 x 8.50) 153 Merchandise Sales Record sale of inventory 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10) 109 Merchandise Inventory Recorded the cost of goods sold 30-Sep Merchandise Inventory (25 x $6.05) 151 Cash Purchases Sale Ending Inventory 7-Sep Merchandise Inventory (10 x $6) 50 36 1 23 23 7-Sep 10 $ 6.00 $ 60.00 10 $ 6.00 $ 60.00 Cash 37 Purchased inventory the "July Journal Entries" tab Chart of Accounts July Journal Entries August Journal Entries September Journal Entries Inventory Valuation T-Accounts + Ready + 100% NOV 24 tv X W OChrome File Edit View History Bookmarks People Tab Window Help $ 95%% Sun 8:19 PM Q DE AutoSave ( OFF * v . .. C May C Analy PRAC f Log ir @ 4-1-1 3 3-1F S A X Co. How E The Inforr Cart Beau G beau G town! + Home Insert Draw Page Layout C A learn.snhu.edu/content/enforced/296595-ACC-201-R2386-OL-TRAD-UG.19EW2/Course%20Documents/ACC%20201%20Milestone%2. Calibri 11 Paste BIU ~ ~ N84 4 x v fx Merchandise In B D Southern New Hampshire University IS WN FIFO USE THIS ONE FOR THE SEPTEMBER ENTRIES ACC 201 Milestone One Guidelines and Rubric Date Purchases 7-Sep 10 $ 6.00 $ 60. Overview: In this milestone, you will move through the first four steps of Final Project I by creating the monthly journal entries and general ledger accounts in your accounting workbook. The monthly journal entries are how businesses input financial activities into their accounting systems. The values from these entries 15-Sep are posted to the general ledger. 20-Sep 20 $ 6.10 $ 122. 10 Prompt: Your dog, Peyton, has severe allergies and cannot have the usual store-bought dog treats. You have been making homemade treats for him that are all- natural and hypoallergenic. Over the past year, you have been making and selling these treats out of your home, and you have been quite successful. You now 12 have an opportunity to open your own dog treat bakery. You have decided on a corporate form of business and have named your company "Peyton Approved." 13 24-Sep 14 15 To complete Milestone One, use accepted accounting principles to follow and record your business transactions for a three-month period. You will find the 16 provided data for your workbook in the appendix at the end of this document. The data have been separated from the prompt so that you can more easily view 17 30-Sep 25 $ 6.05 $ 1 the full scope of the assignment. Links have been provided to help you locate the information you need as you move through each step. 18 19 20 55 $ 333. Specifically, the following critical elements must be addressed: 1. Record financial data that accurately captures business transactions according to accepted accounting principles. A. Step One: Complete the "July Journal Entries" tab in your workbook using the Step One data in the appendix. B. Step Two: Complete the "August Journal Entries" tab in your workbook using the Step Two data in the appendix. . Step Three: Complete the "September Journal Entries" tab in your workbook using the Step Three data and updated scenario information in the appendix. Note that there was an additional line of products added this month, so you must first complete the "Inventory Valuation" tab in your workbook and then copy the journal entries from the inventory evaluation page into your journal for this month to ensure the impact of merchandising is reflected in your reporting The following critical element is not graded: D. Step Four: Transfer posted entries to T accounts. Purchases 36 7-Sep 10 $ 6.00 $ 60. Rubric 37 Guidelines for Submission: Your completed accounting workbook should have all tabs fully and accurately populated in the provided Excel template. Chart of Accounts July Journal Ready Critical Elements Evident (100%) Not Evident (0%) Value NOV 24 tv X WChrome File Edit View History Bookmarks People Tab Window Help $ 95% Sun 8:20 PM Q DE AutoSave ( OFF ~ ~ . .. c May C Analy PRAC f Log ir @ 4-1-1 0 3-1Fi S A X Co. How E The & Inforr # Cart Beau G beau G town + Home Insert Draw Page Layout C A learn.snhu.edu/content/enforced/296595-ACC-201-R2386-OL-TRAD-UG.19EW2/Course%20Documents/ACC%20201%20Milestone%2... Calibri 11 Record Financial Data: Step Three Completes the "September Journal Entries" tab Does not complete the "September Journal 33.34 Paste B IU ~ ~ Entries" tab Total 100% N84 4 x v fx Merchandise In B D Appendix: Workbook Data for Milestone One IS WN Step One Data (Click on the link to return to the prompt.) FIFO USE THIS ONE FOR THE SEPTEMBER ENTRIES Date Purchases The following events occur in July, 2018: 7-Sep 10 $ 6.00 $ 60. 15-Sep July 1: You take $10,000 from your personal savings account and buy common stock in Peyton Approved. 20-Sep 20 $ 6.10 $ 12 July 1: Purchase $6,500 in baking supplies from vendor, on account. 10 12 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. 13 24-Sep 14 July 7: Enter into a lease agreement for bakery space. The agreement is for 1 year. The rent is $1,500 per month, and the last month's rent payment of 15 $1,500 is required at time of lease agreement. The payment was made in cash. Lease period is effective July 1, 2018, through June 30, 2019. 16 17 30-Sep 25 $ 6.05 $ 151 18 July 10: Pay $375 to the county for a business license. 19 20 55 $ 333. July 11: Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipment-use 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 $6,000, 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 office supplies. July 15: Hire part-time helper to be paid $12 per hour. Pay periods are the 1" through the 15" and 16" through the end of the month, with paydays being the 20" for the first pay period and the 5" of the following month for the second pay period. (No entry is required on this date; it is here for informational purposes only.) Purchases 36 7-Sep 10 $ 6.00 $ 60. 37 July 30: Received telephone bill for July in amount of $75. Payment is due on August 10. Chart of Accounts July Journal Ready NOV 24 tv X WChrome File Edit View History Bookmarks People Tab Window Help $ 95% Sun 8:20 PM Q AutoSave O OFF * v . .. c May: C Analy * PRAC f Log it 3 4-1-1 @ 3-1F S A X Co. How E The & Infort # Cart Beau G beau G town + Home Insert Draw Page Layout C A learn.snhu.edu/content/enforced/296595-ACC-201-R2386-OL-TRAD-UG.19EW2/Course%20Documents/ACC%20201%20Milestone%2.. Calibri 11 July 31: Pay $2,400 for a 12-month insurance policy. Policy effective dates are August 1, 2018, through July 31, 2019. Paste BI U ~ ~ July 31: Accrue wages earned for employee for period of 16" through 31" of July (Wage calculations table provided below). N84 4 x v fx Merchandise In B D July 31: Total July bakery sales were $15,000. $5,000 of these sales are on accounts receivable. IS WN Step Two Data (Click on the link to return to the prompt.) FIFO USE THIS ONE FOR THE SEPTEMBER ENTRIES Date Purchases The following events occur in August, 2018: 7-Sep 10 $ 6.00 $ 60. 15-Sep August 5: Paid employee for period ending 7/31. 20-Sep 20 $ 6.10 $ 12 August 8: Receive payments from customers towards accounts receivable in amount of $3,800. 10 12 August 10: Paid July telephone bill. 13 24-Sep 14 August 15: Purchase additional baking supplies in amount of $5,000 from vendor, on account. 15 16 August 15: Accrue wages earned for employee from period of 1" through 15th of August (Wage calculations table provided below). 17 30-Sep 25 $ 6.05 $ 151 18 19 August 15: Pay rent on bakery space. 20 55 $ 333. August 18: Receive payments from customers towards accounts receivable in amount of $3,000. August 20: Paid $8,500 toward baking supplies vendor payable. August 20: Pay employee for period ending 8/15. August 22: $300 in office supplies purchased. August 31: Received telephone bill for August in amount of $75. Payment is due on September 10. August 31: Accrue wages earned for employee for period of August 16" through August 31" (Wage calculations table provided below). Purchases August 31: August bakery sales total $20,000. $7,500 of this total is on accounts receivable. 36 7-Sep 10 $ 6.00 $ 60. 37 EL. Chart of Accounts July Journal Ready NOV 24 - 20 tv X WChrome File Edit View History Bookmarks People Tab Window Help $ 95% Sun 8:20 PM Q AutoSave O OFF ~ . .. c May C Analy PRAC f Log ir @ 4-1-1 3 3-1F S A X Co. How E The Inforr # Cart Beau G beau G town + Home Insert Draw Page Layout C A learn.snhu.edu/content/enforced/296595-ACC-201-R2386-OL-TRAD-UG.19EW2/Course%20Documents/ACC%20201%20Milestone%2... * Calibri 11 Paste B IU ~ ~ Southern New Hampshire University Step Three (Click on the link to return to the prompt.) N84 4 X v fx Merchandise In B D Updated Scenario: Many customers have been asking for more hypoallergenic products, so in September you start carrying a line of hypoallergenic shampoos on a trial basis. The following information relates to the purchase and sales of the shampoo: IS WN FIFO USE THIS ONE FOR THE SEPTEMBER ENTRIES You use the perpetual inventory method. Although you could use the following valuation methods -FIFO, LIFO, or weighted average, you choose to use Date Purchases 10 $ 6.00 $ the FIFO method. 7-Sep 60. Data: The following events occur in September, 2018: 15-Sep September 1: Paid dividends to self in amount of $10,000. 20-Sep 20 $ 6.10 $ 12 10 September 5: Pay employee for period ending 8/31. 12 13 24-Sep September 7: Purchase merchandise for resale. See "Inventory Valuation" tab for details. 14 15 16 September 8: Receive payments from customers toward accounts receivable in amount of $4,000. 17 30-Sep 25 $ 6.05 $ 151 18 September 10: Pay August telephone bill. 19 20 55 $ 333. September 11: Purchase baking supplies in amount of $7,000 from vendor on account. September 13: Paid on supplies vendor account in amount of $5,000. September 15: Accrue employee wages for period of September 1 through September 15. September 15: Pay rent on bakery space: $1,500. September 15: Record merchandise sales transaction. See "Inventory Valuation" tab for details. September 15: Record impact of sales transaction on COGS and the inventory asset. See "Inventory Valuation" tab for details. Purchases September 20: Pay employee for period ending 9/15. 36 7-Sep 10 $ 6.00 $ 60. 37 September 20: Purchase merchandise inventory for resale to customers. See "Inventory Valuation" tab for details. Chart of Accounts July Journal September 24: Record sales of merchandise to customers. See "Inventory Valuation" tab for details. Ready NOV MP 24 X WChrome File Edit View History Bookmarks People Tab Window Help $ 95% Sun 8:20 PM Q AutoSave O OFF * v . . . c May: C Analy PRAC f Log it 3 4-1-1 3 3-1F S A X Co. How E The & Inforr # Cart Beau G beau G town + Home Insert Draw Page Layout C A learn.snhu.edu/content/enforced/296595-ACC-201-R2386-OL-TRAD-UG.19EW2/Course%20Documents/ACC%20201%20Milestone%2.. * Calibri 11 Paste BI U ~ ~ Southern New Hampshire University September 24: Record impact of sales transaction on COGS and the inventory asset. See "Inventory Valuation" tab for details. N84 4 x v fx Merchandise In B D September 30: Purchase merchandise inventory for resale to customers. See "Inventory Valuation" tab for details. IS WN September 30: Accrue employee wages for period of September 16" through September 30*h FIFO USE THIS ONE FOR THE SEPTEMBER ENTRIES Date Purchases September 30: Total September bakery sales are $20,000. $6,000 of these sales are on accounts receivable. 7-Sep 10 $ 6.00 $ 60. 15-Sep Wage calculation data: 20-Sep 20 $ 6.10 $ 12 Month Hours Rate Pay 10 31 Jul 10 12 120 40 480 12 15 Aug. 12 420 13 24-Sep 31 Aug. 35 12 14 15 Sep. 38 12 456 15 30 Sep. 40 12 480 16 17 30-Sep 25 $ 6.05 $ 1 18 19 20 55 $ 333. Purchases 36 7-Sep 10 $ 6.00 $ 60. 37 Chart of Accounts July Journal Ready NOV 24 Y tv X W