Please complete the following tasks:
- Complete the Income Statement.
- Complete the Statement of Retained Earnings
- Complete the Balance Sheet.
- Explain what you like about the completing the accounting cycle.
- Explain what you least like about completing accounting cycle.
Happy House Bakeshop Balance Sheet as of October 31, 2018 Assets Current Assets Cash Accounts Receivable Baking Supplies Pre-paid Insurance Total Current Assets Long Term Assets Equipment less: Accumulated Depreciation Total Long Term Assets Total Assets Liabilities Current Liabilities Accounts Payable Salaries Payable Total Current Liabilities Long Term Liabilities Bank Loan Total Long Term Liabilities Total Liabilities Owners' Equity Common Stock Retained Eamings Beginning Retained Earnings Net Income less: Dividends Ending Retained Earnings Total Owners' Equity Total Liabilities and Owners' EquityGeneral Journal Journal # Date Accounts and Description Debit Credit #1 1/10/2018 Cash $20,000 Common Stock $20,000 Initial investment: Cash received for stock ownership #2 1/10/2018 Delivery Van - Equipment $11,000 Cash $4,000 Bank Loan $7,000 Purchase delivery van with cash and bank loan #3 3/10/2018 Baking Supplies $900 Accounts Payable $900 Purchased supplies on account #4 5/10/2018 Pre-paid Insurance $1,800 Cash $1,800 Paid annual premium for insurance policy - effective 10/1/2018 #5 12/10/2018 Accounts Receivable $4,800 Service Revenue $4,800 Billing for baking services rendered #6 18/10/2018 Bank Loan $1,500 Cash $1,500 Loan payment on van loan #7 18/10/2018 Accounts Payable $500 Cash $500 Payment to baking supplies vendor #8 20/10/2018 Salaries Expense $1,700 Cash $1,700 Payment of salaries#9 21/10/2018 Cash $1,200 Accounts Receivable $1,200 Collections of Accounts Receivable #10 25/10/2018 Accounts Receivable $1,900 Service Revenue $1,900 Billing for baking services rendered #11 31/10/2018 Gas & Oil Expense $500 Cash $500 Gas and Oil (expense) #12 31/10/2018 Dividend $800 Cash $800 Payment of dividend to shareholders Adjusting entries: Debit Credit (a) 31/10/2018 Accounts Receivable 2500 Service Revenue 2500 Adjust for unbilled fees earned in October 2018 (b) 31/10/2010 Depreciation Expense $500 Accumulated Depreciation $500 Record depreciation (c ) 31/10/2010 Insurance Expense $150 Pre-paid Insurance $150 Adjust for the use (expense) of one month's pre-paid insurance (d) 31/10/2018 Baking Supplies Expense $600 Baking Supplies $600 Adjust for the use (expense) of $600 of supplies (e ) 31/10/2018 Salaries Expense $500 Salaries Payable $500 To accure for employee salariesHappy House Bakeshop Income Statement for period of October 1 through October 31, 2018 Revenue Less: Expenses Salaries Baking Supplies Gas & Oil Depreciation Insurance Total Expenses Net IncomeHappy House Bakeshop Statement of Retained Earnings For the month ended October 31, 2018 Beginning Retained Earnings Net Income Dividends Ending Retained EarningsCash Accounts Receivable Pre-Paid Insurance Supplies Debit Credit Debit Credit Debit Credit Debit Credit (1) $20,000 (5) $4,800 (4) $1,800 (3) $900 $4,000 (2) $1,200(9) $1,800 (4) (10) $1,900 $150 (c ) $600 (d) $1,500 (6) $6,700 $500 (7) $1,700 (B) (a) $2,500 (9) $1,200 $500 (11) $800 (12) $10,400 Equipment: Van Accum. Depreciation Accounts Payable Bank Loan Debit Credit Debit Credit Debit Credit Debit Credit (2) $11,000 $200 (b) $900 (3) $7000 (2) (7) $500 (6) $1,500 $400 $5,500 Salaries Payable Revenue Gas & Oil Expense Salaries Expense Debit Credit Debit Credit Debit Credit Debi Credit $500 (e) $4,800 (5) (11) $500 (B) $1,700 $1,900 (10) $500 $6,700 (e) $500 $2,200 $2,500 (a) $9,200 $9,200\fAccount Beginnng Balance Unadjusted Trial Balance Adjusting Entries Adjused Trial Balance Debit Credit Debit Credit Debit Credit Debit Credit 7 Cash $10,400 $10,400 8 Accounts Receivable o o o o o O $5,500 $2,500 $8,000 9 Baking Supplies $900 $600 $300 Prepaid Insurance $1,800 $150 $1,650 11 Equipment $11,000 $11,000 12 Accumulated Deprec. $200 b $200 13 14 Accounts Payable $400 $400 15 Salaries Payable $500 $500 16 Bank Loan $5,500 $5,500 17 18 Common Stock $20,000 $20,000 19 Retained Earnings 20 Dividends $800 $800 21 22 Service Revenue 0 $6,700 $2,500 a $9,200 23 Gas & Oil Expense $500 $500 24 Baking Supplies Expense $60 $60 25 Depreciation Expense $20 $20 26 Insurance Expense $150 $150 27 Salaries Expense $1,700 $50 $2,200 28 $0 $32,600 $32,600 $3,950 $3,950 $35,800 $35,800 29
