Peyton Approved
Adjusting Journal Entries
2017
Date	Accounts	Debit	Credit
31-Dec	Depreciation Expense
	Accumulated depreciation
31-Dec	Amortization Expense
	Accumulated Amortization
31-Dec	Interest Expense
	Interest Payable
31-Dec	Insurance Expense
	Prepaid Insurance
31-Dec	Baking Cost of Goods Sold
	Baking Supplies
31-Dec	Office Supplies Expense
	Office Supplies
31-Dec	Wages Expense
	Wages Payable
		-	-

Peyton Approved

Trial Balance

2017

Unadjusted trial balance

Adjusting entries

Adjusted trial balance

Account

Debit

Credit

Debit

Credit

Debit

Credit

Cash

55,428.00

55,428.00

Baking Supplies

165,250.00

165,250.00

Merchandise Inventory (FIFO)

25,750.00

25,750.00

Prepaid Rent

7,500.00

7,500.00

Prepaid Insurance

2,400.00

2,400.00

Baking Equipment

26,000.00

26,000.00

Accumulated Depreciation

3,000.00

3,000.00

Leasehold Improvements

10,000.00

10,000.00

Accumulated Amortization

2,000.00

2,000.00

Trademark

2,300.00

2,300.00

Office Supplies

1,600.00

1,600.00

Accounts Receivable

30,401.00

30,401.00

Notes Payable

10,000.00

10,000.00

Interest Payable

-

Accounts Payable

27,325.00

27,325.00

Wages Payable

-

Loans Payable

21,000.00

21,000.00

Common Stock

30,000.00

30,000.00

Dividends

20,000.00

20,000.00

Bakery Sales

335,675.00

335,675.00

Merchandise Sales

35,200.00

35,200.00

Baking Cost of Goods Sold

-

Rent Expense

90,000.00

90,000.00

Interest Expense

-

Insurance Expense

-

Depreciation Expense

-

Amortization Expense

-

Misc. Expense

2,780.00

2,780.00

Office Supplies Expense

-

Business License Expense

375.00

375.00

Advertising Expense

5,200.00

5,200.00

Wages Expense

-

Telephone Expense

3,456.00

3,456.00

Merchandise COGS (FIFO)

15,760.00

15,760.00

Total: (FIFO)

464,200.00

464,200.00

-

-

464,200.00

464,200.00

Demonstrate the year-end adjustment process. A. Prepare the adjusting journal assignments in the Adjusting Entries tab in the provided workbook. B. Transfer the values from the Adjusting Entries tab to the proper cells of the Adjusting Entries columns in the Worksheet tab. C. Create the adjusted trial balance by completing the Adjusted Trial Balance columns using the Worksheets tab. D. Close temporary accounts by completing the Closing Entries tab. II. Prepare an income statement for your company by completing the Income Statement tab in the provided workbook.