Please see the attachmentand answer these questions. Each question with 5-7 sentences.

1.Using content from your accounting cycle workbook, provide an overview of the companys accounting system. What basis of accounting is used? Why? How does it support responsible practices within the company?

2.Using content from your accounting cycle workbook, what strategies is the business using to ensure responsible accounting practices? Why have these strategies been selected? Describe the overall accounting process. For example, when are entries made, how often are statements produced and reviewed, and why? Describe theinternal controls for cash that are in place.

3.Using content from your accounting cycle workbook, analyze the results of operations. What do these results tell a business? What is the company doing well and what changes might be needed? What do the financial statements say about the strengths and weaknesses of the companys financial position? Be sure to discuss the role of ratio analysis.

4.Overall, is the company going in the right direction? Why or why not? What opportunities can the company explore given its strengths and weaknesses? How would these be beneficial? Support your analysis with information from your accounting cycle workbook.

Asset Accounts Acct # Cash Baking Supplies Prepaid Rent Prepaid Insurance Baking Equipment Misc. Supplies Accounts Receivable Accumulated Depreciation 101 102 103 104 105 106 107 108 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. Liability Accounts Equity Accounts Acct # Notes Payable Accounts Payable Wages Payable Interest Payable he appropriate accounts to record to as you are analyzing and is nothing to complete on this page, this is simply a resource for you. 201 Common Stock 202 Dividends 203 204 Revenue Accounts Bakery Sales Merchandise Sales Expense Accounts Baking Supplies Expense Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Interest Expense Depreciation Expense s Acct # 301 302 ts Acct # 401 402 ts Acct # 501 502 503 504 505 506 507 508 509 510 Peyton Approved General Journal Entries Jul-14 Date Accounts 1-Jul Cash Common Stock Contributed cash for common stock 1-Jul Accounts Payable Baking Supplies Debit 15,000.00 15,000.00 8,500.00 8,500.00 3-Jul Cash Notes Payable 10,000.00 7-Jul Rent Expense Cash 3,000.00 10,000.00 3,000.00 10-Jul Business License Expense Cash 375.00 11-Jul Misc Expense Cash 250.00 13-Jul Baking Equipment Common Stock Credit 375.00 250.00 5,000.00 5,000.00 13-Jul Advertising Cash 200.00 14-Jul Misc Supplies Cash 300.00 200.00 300.00 15-Jul No entry required 30-Jul Telephone Expense Accounts Payable 45.00 31-Jul Insurance Expense Cash 1,200.00 31-Jul Salaries Expense Salaries Payable 45.00 1,200.00 120.00 120.00 31-Jul Cash Accounts Receivable Sales Revenue 10,000.00 5,000.00 15,000.00 Peyton Approved General Journal Entries Aug-14 Date Accounts 5-Aug Salaries Payable Cash 8-Aug Cash Accounts Receivable 10-Aug Accured Expenses Cash 15-Aug Account Payable Baking Supplies 15-Aug Salaries Expense Salaries Payable Debit 120.00 3,200.00 45.00 5,000.00 480.00 15-Aug Rent Expense Cash 1,500.00 18-Aug Cash Accounts Receivable 1,000.00 20-Aug Accounts Payable Cash 8,500.00 20-Aug Salaries Payable Cash 480.00 22-Aug Misc Supplies Cash 300.00 31-Aug Telephone Expense Accounts Payable 31-Aug Salaries Expense Salaries Payable 31-Aug Cash Accounts Receivable 45.00 420.00 12,500.00 7,500.00 Sales Revenue Credit 120.00 3,200.00 45.00 5,000.00 480.00 1,500.00 1,000.00 8,500.00 480.00 300.00 45.00 420.00 $ 20,000.00 Peyton Approved General Journal Entries Sep-14 Date 1-Sep Dividends Cash Accounts 5-Sep Salaries Payable Cash 7-Sep Misc. Supplies Cash 8-Sep Cash Accounts Receivable 10-Sep Accured Expenses Cash 11-Sep Accounts Payable Baking Supplies Debit 3,000.00 3,000.00 420.00 420.00 60.00 60.00 4,000.00 4,000.00 45.00 45.00 7,000.00 7,000.00 13-Sep Accounts Payable Cash 5,000.00 15-Sep Salaries Expense Salaries Payable 456.00 15-Sep Rent Expense Cash Credit 5,000.00 456.00 1,500.00 1,500.00 15-Sep Cash Merchandise Sales 68.00 15-Sep COGS 48.00 68.00 48.00 Misc. Supplies 20-Sep Salaries Payable Cash 456.00 20-Sep Misc. Supplies Cash 122.00 456.00 122.00 24-Sep Cash Merchandise Sales 153.00 24-Sep COGS 109.62 153.00 109.62 Misc. Supplies 30-Sep Misc. Supplies Cash 151.25 30-Sep Salaries Expense Salaries Payable 480.00 30-Sep Cash Accounts Receivable Sales Revenue 15,125.00 480.00 19,000.00 6,000.00 25,000.00 FIFO Date 7-Sep Purchases 10 $ 6.00 $ Sales 60.00 15-Sep 20-Sep 8 $ 20 $ 6.10 $ 55 LIFO 7-Sep 6.05 $ 151.25 $ 333.25 Purchases 10 $ 6.00 $ 6.10 $ 6.05 $ 4 4 25 29 29 10 6.00 $ 48.00 122.00 151.25 2 2 20 22 18 $ 25 $ $ 157.60 60.00 24-Sep 30-Sep 6.00 $ 12.00 6.10 $ 97.60 $ 109.60 26 8 $ 20 $ 2 Sales 15-Sep 20-Sep 48.00 2 20 22 2 $ 16 $ 25 $ 6.00 $ 122.00 24-Sep 30-Sep 10 6.10 $ 109.80 2 2 4 2 55 weighted average 7-Sep $ 333.25 Purchases 10 $ 6.00 $ 60.00 6.10 $ 55 48.00 6.05 $ 151.25 $ 333.25 2 2 20 22 18 $ 25 $ 6.00 $ 122.00 24-Sep 30-Sep 10 8 $ 20 $ $ 157.80 Sales 15-Sep 20-Sep 26 2 25 29 29 26 6.09 $ 109.62 4 157.62 4 25 29 Ending Inventory $ 6.00 $ 60.00 $ 6.00 $ 12.00 $ $ 6.00 $ 6.10 $ $ 12.00 122.00 134.00 $ 6.10 $ 24.40 $ $ 6.10 $ 6.05 $ $ $ 24.40 151.25 175.65 175.65 Ending Inventory $ 6.00 $ 60.00 $ $ $ $ $ $ 6.00 $ 6.00 $ 6.10 $ $ 6.00 6.10 6.00 $ $ $ $ 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory Dr 60.00 15-Sep Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Recorded the cost of goods sold 48.00 20-Sep Merchandise Inventory (20 x $6.10 ) Cash 122.00 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10) Merchandise Inventory Recorded the cost of goods sold 109.60 30-Sep Merchandise Inventory (25 x $6.05) Cash 151.25 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 12.00 12.00 122.00 134.00 12.00 12.20 24.20 12.00 15-Sep Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Record inventory reduction due to sale 48.00 20-Sep Merchandise Inventory (20 x $6.10) Cash 122.00 $ $ $ 6.10 $ 6.05 $ $ $ Ending Inventory 6.00 $60 $ 6.00 $ $ 6.00 $ 6.10 $ $ $ $ $ 12.20 151.25 175.45 175.45 $ 6.05 $ $ 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 24-Sep Cost of Goods Sold (18 x $6.10) Merchandise Inventory Record inventory reduction due to sale 109.80 30-Sep Merchandise Inventory (25 x $6.05) Cash 151.25 7-Sep Merchandise Inventory (10 x $6) Cash Purchased inventory 60.00 12.00 12.00 122.00 per unit 134.00 $6.09 24.38 151.25 151.25 $5.22 15-Sep Cash (8 x $8.50) Merchandise Sales Revenue Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6) Merchandise Inventory Record inventory reduction due to sale 48.00 20-Sep Merchandise Inventory (20 x $6.10) Cash 122.00 24-Sep Cash (18 x 8.50) Merchandise Sales Revenue Record sale of inventory 153.00 24-Sep Cost of Goods Sold (18 x $6.09) Merchandise Inventory Record inventory reduction due to sale 109.62 30-Sep Merchandise Inventory (25 x $6.05) Cash 151.25 Cr 60.00 68.00 ### 122.00 153.00 109.60 151.25 ### 68.00 ### 122.00 Purchases 9/7: 10 bottles purchased at $6 9/20: 20 bottles purchased at $6.10 9/30: 25 bottles purchased at $6.05 Sales - selling price, $8.50 a bottle 9/15: 8 bottles 9/24: 18 bottles 153.00 109.80 151.25 ### 68.00 ### 122.00 153.00 109.62 151.25 date 1-Jul 3-Jul 31-Jul 8-Aug 18-Aug 31-Aug 8-Sep 15-Sep 30-Sep 24-Sep Cash 15,000.00 10,000.00 10,000.00 3,200.00 1,000.00 12,500.00 4,000.00 68.00 19,000.00 153.00 3,000.00 375.00 250.00 200.00 300.00 1,200.00 120.00 45.00 1,500.00 8,500.00 480.00 300.00 3,000.00 420.00 60.00 45.00 5,000.00 1,500.00 456.00 122.00 date 7-Jul 10-Jul 11-Jul 13-Jul 14-Jul 31-Jul 5-Aug 10-Aug 15-Aug 20-Aug 20-Aug 22-Aug 1-Sep 5-Sep 7-Sep 10-Sep 13-Sep 15-Sep 20-Sep 20-Sep 151.25 30-Sep date Notes Payable 10,000 10,000 31-Jul 31-Aug 30-Sep Accounts Rec. 5000 3200 7,500 1000 6000 4000 18500 10300 74,921.00 47,896.75 11-Jul 13-Jul Baking equipment 5,000 5,000 250 8200 27,024.25 Misc. expense 250 date 3-Jul 8-Aug 18-Aug 8-Sep 1-Jul 15-Aug 11-Sep Baking supplies 8,500 5000 7000 14-Jul 22-Aug 600 600 20,500 7-Jul Misc. supplies 300 300 Prepaid rent 1,500 30-Sep 0 Prepaid insurance 1,000 1,000 1,500 20-Aug 13-Sep 10-Aug 10-Sep Accounts payable 8500 8500 5,000 45 45 5,000 45 45 7,000 1-Jul 30-Jul 15-Aug 31-Aug 11-Sep Salaries and wages expense 31-Jul 120 15-Aug 480 31-Aug 420 15-Sep 456 30-Sep 480 7,000 10-Aug 10-Sep Telephone expense 45 45 1,956 1-Sep Dividends 3,000 90 3,000 baking supplies expense 8500 1-Jul 0 misc supplies expense COGS LIF0 0 Merchandise Sales Revenue 68.00 153.00 15-Sep 24-Sep 221.00 COGS Weighted Avg. - Business License exp 10-Jul 375 Common Stock 15,000 5000 20,000 375 31-Jul Insurance expense 1,200.00 1,000 1-Jul 13-Jul 30-Sep COMPLETION OF STEPS 1- 4 DELIVERABLE: CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOUR WORKBOOK TO COMPLETE THE 3-3 CHECKPOINT REQUIREMENT 200 Advertising expense 13-Jul 200 200 7-Jul 15-Aug 15-Sep Rent expense 3,000 1500 1500 1500 6,000 4,500 24-Sep 15-Sep Mercandise inventory 7-Sep 20-Sep 30-Sep 1,500 COGS 109.6 48 157.6 0 Salaries and wages payable 120 5-Aug 120 480 20-Aug 480 5-Sep 420 420 20-Sep 456 456 480 480 31-Jul 15-Aug 31-Aug 15-Sep 30-Sep 60 122 151.25 109.6 48 333 176 158 depreciation expense 30-Sep 208 208 Interest expense 150 adj acc dep 208 208 Interest payable 150 adj 150 COGS FIFO 150 - Merch. Inv. FIFO - Merch. Inv. LIFO - 30-Sep EADY TO SUBMIT YOUR OINT REQUIREMENT 24-Sep 15-Sep Sales revenue 15000 July 20000 Aug 25000 Sept 60000 Merch. Inv. Avg. - Account Cash Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Peyton Approved Trial Balance 2014 Unadjusted trial balance Debit Credit 47,896.75 20,500.00 175.65 1,500.00 Baking Equipment Misc. Supplies Accounts Receivable Notes Payable Accounts Payable Wages Payable Common Stock Dividends Misc. Supplies Expenses Merchandise Sales Business License Expense Rent Expense Insurance Expense 5,000.00 600.00 10,300.00 Misc. Expense Business Supplier Expense Advertising Expense Wages Expense Telephone Expense COGS Depreciation Expense Accumulated Depreciation Bakery Sales Interest Expense Interest Accured 250.00 10,000.00 7,000.00 480.00 20,000.00 3,000.00 221.00 375.00 4,500.00 1,200.00 200.00 1,956.00 90.00 157.60 60,000.00 97,701.00 - 97,701.00 - n Approved Balance 2014 Adjusting entries Debit Credit 19,400.00 1,000.00 5,000.00 600.00 10,300.00 3,000.00 550.00 375.00 4,500.00 1,200.00 550.00 10,000.00 7,000.00 480.00 20,000.00 221.00 1,000.00 150.00 250.00 19,400.00 200.00 1,956.00 90.00 157.60 208.33 150.00 - 208.33 60,000.00 150.00 21,308.33 119,009.33 119,009.33 550.00 550.00 1,000.00 19,400.00 208.33 208.33 150.00 21,308.33 Adjusted trial balance Debit Credit 47,896.75 20,500.00 19,400.00 175.65 1,500.00 1,000.00 - COMPLETION OF STEPS 5-7 DELIVERABLE CONGRATULATIONS! YOU ARE NOW WORKBOOK TO COMPLETE THE 4-3 CHEC N OF STEPS 5-7 DELIVERABLE: ULATIONS! YOU ARE NOW READY TO SUBMIT YOUR TO COMPLETE THE 4-3 CHECKPOINT REQUIREMENT Peyton Approved Adjusting Journal Entries 2014 Date Accounts 30-Sep Depreciation Expense accumulated depreciation 30-Sep Interest Expense To Accured Expenses 30-Sep Prepaid Insurnace To Insurnace Expenses Debit 208.33 Credit 208.33 150.00 150.00 1,000.00 1,000.00 30-Sep Baking Supplies Expense Baking Supplies To Record Supplies Used 19,400.00 Mis Supplies Expense Misc Supplies To Record Supplies Used 550.00 19,400.00 550.00 Peyton Approved Income Statement For Qtr. Ending 9/30/2014 Revenues Sales Revenue Mechandise Sales Total Revenue Less : Cost of Goods Sold Gross Profit Expenses Misc supplies expense Baking supplies expense Rent expense Salary expense Insurance expense Depreciation expense - Equiptment Telephone expense Misc expense Advertising expense Interest expense Buisness License Expense Total expenses Net Income $ $ $ $ $ 60,000.00 221.00 60,221.00 157.60 60,063.40 $ $ $ $ $ $ $ $ $ $ $ $ $ 550.00 19,400.00 4,500.00 1,956.00 200.00 208.33 90.00 250.00 200.00 150.00 375.00 27,879.33 32,184.07 Peyton Approved Balance Sheet As of September 30, 2014 Assets Current assets Cash Merchandise inventory Baking supplies Accounts receivable Miscellaneous supplies Prepaid insurance Prepaid Rent Total Current assets Fixes Assets Equipment Less: Accumulated Depreciation Total Fixed assets Total Assets $ 47,896.75 $ 175.65 $ 1,100.00 $ 10,300.00 $ 50.00 $ 1,000.00 $ 1,500.00 $ 62,022.40 $ 5,000.00 $ 208.33 $ $ 4,791.67 4,791.67 $ 66,814.07 - Peyton Approved Balance Sheet As of September 30, 2014 Liabilities and Owners' Equity Current Liabilities Account payable Salaries payable $ $ 7,000.00 480.00 $ $ 150.00 7,630.00 Interest payable Total current liabilities Long-term liabilities Note payable Total Liabilities $ 10,000.00 $ 17,630.00 Owner Equity Common Stock Retained Earnings Total owner equity $ 20,000.00 $ 29,184.07 $ 49,184.07 Total Liabilities and equity $ 66,814.07 Peyton Approved Statement of Retained Earnings For Qtr. Ending 9/30/2014 Retained Earnings beginning bal Add: Net Income Less: Dividends Retained Earnings ending bal $ $ 32,184.07 $ 32,184.07 $ 3,000.00 $ 29,184.07 Peyton Approved Closing Entries 9/30/2014 Date Accounts 30-Sep Sales Revenue Income summary To close revenue account Debit 60221 Credit 60,221.00 Income summary Misc supplies expense Baking supplies expense Rent expense Salary expense Insurance expense Depreciation expense - Equiptment Telephone expense Misc expense Advertising expense Interest expense Buisness License Expense 27,879.33 550.00 19,400.00 4,500.00 1,956.00 200.00 208.33 90.00 250.00 200.00 150.00 375.00 To close all expense account Income summary Retained Earnings To transfer net income to R/E $ Retained Earnings Dividends To close dividend to R/E $ 32,184.07 $ 32,184.07 $ 3,000.00 3,000.00 Peyton Approved Post Closing Trial Balance 9/30/2014 Account Cash Merchandise inventory Baking supplies Accounts receivable Miscellaneous supplies Prepaid insurance Equiptment Prepaid Rent Accumulated Depreciation - Equiptment Account payable Salaries payable Note payable Interest payable Common Stock Retained Earnings Total Unadjusted Trial Balance Debit $ 47,897 $ 176 $ 1,100 $ 10,300 $ 50 $ 1,000 $ 5,000 $ 1,500 $ 67,022 adjusted Trial Balance Credit $ $ $ $ $ $ $ $ 208 7,000 480 10,000 150 20,000 29,184 67,022 0 Peyton Approved Reversing Entries 9/30/2014 Date Accounts Debit Credit COMPLETION OF STEPS 8-11 DELIVERABLE: CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOUR COMPLETED WORKBOOK (STEPS 1 - 11)TO COMPLETE THE 6-2 CHECKPOINT REQUIREMENT