Scenario for adjusting entries: Year end is December 31, 2017. Peyton Baking Company uses the following accounting practices:
Trial Balance Unadjusted trial balance* Account Debit Adjusting entries Credit Debit Adjusted trial balance Cash 55, 428.00 Credit Debit Credit Baking Supplies 165, 250.00 55, 428.00 Merchandise Inventory ( FIFO ) 25 , 750.00 165 , 250.00 Prepaid Rent 1. 500.00 25, 750.00 \\60\\09\\^ Prepaid Insurance 2, 400. 00 7, 500.00 10 Baking Equipment 26, 000.00 2, 400.00 Accumulated Depreciation 26, 000.00 3. 000.00 12 Leasehold Improvements 3, 0.00. 0.0 10, 000. 00 13 10, 000. 00 Accumulated Amortization 2, 000.00 2, 000.00 Trademark\\ 2, 300.00 15 2 , 300.00 Office Supplies 1 , 600.00 1. 600.00 30, 401.00 91 Accounts Receivable* 30, 401. 00 \\Notes Payable 10,000.00 10.000.00 18 Interest Payable 19 Accounts Payable 27, 325.00 27, 3:25.00 20 Wages Payable 21 Loans Payable* 21, 000. 00 21, 000.00 22 Common Stock 30, 000. 00 30, 0.00. 00 23 Dividends 20, 000.00 20,000.00 24 Bakery Sales 3.35. 675.00 335. 675.00 25 Merchandise Sales 35, 200.00 35, 200.00 26 Baking Cost of Goods Sold Rent Expense 90, 000. 00* 90.000. 00 Interest EXPENSE Insurance Expense 30 DEPT preciation Expense 31 Amortization Expense 32 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 \\5. 760.00 \\40 \\Total: ( FIFO 464, 200. 00 \\464. 200.00| 464, 200.00 \\Statement of Retained Earn ... \\ ( * )|Local / Packages , Microsoft MicrosoftEdge &wery````bowe, Tempstate / {`Ownloads / Project``` to6. 20^Scenario 96 201 ( 7) _ pace Mclelland for adjusting entries_ Year end is December{ {` `ne Gating ` company uses the following accounting practices . Inventory : Periodic , FIFO for both baking and merchandise* ` Baking supplies : $27, 8:50 ending inventory` Equipment : Straight line method used for equipment* Mixing machine : $5 , 000 initial cost , $500 salvage value , ard year of use of 7 total ($6:42.86 per year )* Ovens : $8, 000 initial cost , $1 ,0100 salvage value , and year of use of / total ( $1, 000 per year ) Other depreciable equipment : $4,000 initial cost , 50 salvage value , 1 st year of use of 4 total ( $1 , 000 per year )\\ Bakery Leasehold Improvements : $10 ,000 , 2 n'd year of use ( 52, 000 per year ) Trademark for company name : Initial cost , $2 , 300 , 3 rd year of use* Office supplies : Periodic , FIFO . Ending balance is $250 .' Pay period is every 2 weeks . Last pay pe / period ended December 27 ." 0 60 employees with a daily pay of $5 , 700 . All receive pay through December 31 . Financing :` 6% interest note payable was made on January 31 , 2017 , and is due February 1 , 2019 5 - year loan was made on June 1 , 2016 . Terms are 7 . 5%6 annual rate , Interest only until due date .\\ _Insurance : Annual policy covers 12 months , purchased in February , covering March 2017 - February 2018 . No monthly adjustments have been made ." Other information : An employee slipped and fell in the baking area and has filed a lawsuit . The company lawyer indicates that it is probable that the company will be found liable . No additional information is available .Home Insert Draw Page Layout Formulas Data Review Vie C D Peyton Approve E Adjusting Journ ved rnal 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
