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 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.

September 1: Paid dividends to self in amount of $10,000. September 5: Pay employee for period ending 8/31. September 7: Purchase merchandise for resale. See Inventory Valuation tab for details. September 8: Receive payments from customers toward accounts receivable in amount of $4,000. September 10: Pay August telephone bill. 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. September 20: Pay employee for period ending 9/15. September 20: Purchase merchandise inventory for resale to customers. See Inventory Valuation tab for details. September 24: Record sales of merchandise to customers. See Inventory Valuation tab for details. September 24: Record impact of sales transaction on COGS and the inventory asset. See Inventory Valuation tab for details. September 30: Purchase merchandise inventory for resale to customers. See Inventory Valuation tab for details. September 30: Accrue employee wages for period of September 16th through September 30th September 30: Total September bakery sales are $20,000. $6,000 of these sales are on accounts receivable.

Wage calculation data:

Sep 15 38 hours Rate 12 Pay 456

Sep 30 40 hours Rate 12 Pay 480