Peyton Approved

Trial Balance

2017

Unadjusted trial balance Adjusting entriesAdjusted trial balance

Account

Debit---------CreditDebit-Credit Debit-------Credit

Cash64,713.7264,713.72

Baking Supplies165,250.00165,250.00

Merch Inventory FIFO)25,750.00 25,750.00

Prepaid Rent 7,500.00 7,500.00

Prepaid Insurance2,400.00 2,400.00

Baking Equipment17,000.0017,000.00

Accu Depreciation 3,285.723,285.72

Leasehold Improv. 10,000.00 10,000.00

Accu Amortization2,000.002,000.00

Trademark2,300.002,300.00

Office Supplies1,600.001,600.00

Accounts Receivable30,401.00 30,401.00

Notes Payable 10,000.0010,000.00

Interest Payable-

Accounts Payable27,325.00 27,325.00

Wages Payable-

Loans Payable21,000.0021,000.00

Common Stock 30,000.0030,000.00

Dividends 20,000.00 20,000.00

Bakery Sales335,675.00335,675.00

Merchandise Sales35,200.00 35,200.00

Baking Cost of Goods Sold-

Rent Expense 90,000.0090,000.00

Interest Expense-

Insurance Expense -

Depreciation Expense -

Amortization Expense-

Misc. Expense 2,780.002,780.00

Office Supplies Expense-

Business License Ex 375.00 375.00

Advertising Expense 5,200.00 5,200.00

Wages Expense-

Telephone Expense3,456.003,456.00

Merch COGS (FIFO) 15,760.00 15,760.00

Total 464,485.72464,485.72--464,485.72--464,485.72

----------------------------------------------------------------------------------------------------------------------------

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

Income Statement

For Year Ending 12/31/2017

Bakery Sales

Merchandise Sales

Total Revenues

Merchandise Cost of Goods Sold (FIFO)

Baking Cost of Goods Sold

Gross Profit

Operating Expenses:

Rent Expense

Interest Expense

Insurance Expense

Depreciation Expense

Amortization Expense

Misc. Expense

Office Supplies Expense

Business License Expense

Advertising Expense

Wages Expense

Telephone Expense

Total Operating Expenses:

Net Income -

----------------------------------------------------------------------------------------------------------------------------

Peyton Approved

Closing Entries

For Year Ending 12/31/2017

Date Accounts Debit Credit

31-Dec Bakery Sales

Merchandise Sales

Income Summary

31-Dec Income Summary

Baking Cost of Goods Sold

Rent Expense

Interest Expense

Insurance Expense

Depreciation Expense

Amortization Expense

Misc. Expense

Office Supplies Expense

Business License Expense

Advertising Expense

Wages Expense

Telephone Expense

Merchandise Cost of Goods Sold (FIFO)

31-Dec Income Summary-

Retained Earnings-

31-Dec Retained Earnings

Dividends -

----------------------------------------------------------------------------------------------------------------------------

Peyton Approved

Statement of Retained Earnings

For Year Ending 12/31/2017

Beginning Balance:-

plus Net Income

less Dividends:

Ending Balance: -

----------------------------------------------------------------------------------------------------------------------------

Overview: In your final project, you will assume the role of an accountant and complete the year-end adjustment process for your company using a provided workbook. This workbook is the first deliverable (Part I) of your final project. In Part II, you will analyze the provided financials of the same company and create a report documenting your findings. For your first milestone, you will complete certain portions of the final project workbook as described in the prompt below. You will complete the entire workbook for your next milestone, due in Module Five. Prompt: Specifically, the following critical elements must be addressed: I. Demonstrate the year-end adjustment process. A. Prepare the adjusting journal entries 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.

Overview: In your final project, you will assume the role of an accountant and complete the year-end adjustment process for your company using a provided workbook. This workbook is the first deliverable (Part I) of your final project. In Part II, you will analyze the provided financials of the same company and create a report documenting your findings. For this second milestone, you will complete the remaining portion of the final project workbook. Notice that you will be resubmitting the components that you completed for the first milestone. You are expected to make corrections and incorporate the feedback received on Milestone One so that the elements for Milestone Two are based on the correct foundation. Prompt: Specifically, the following critical elements must be addressed: I. Prepare a statement of retained earnings by completing the Statement of Retained Earnings tab. II. Prepare a balance sheet by completing the Balance Sheets tab.