Step 8:

Prepare the financial statements

Use your adjusted trial balance to prepare the income statement, statement of owners equity, and balance sheet. You must complete these statements in this order, as there are interdependencies among them.

Step 9:

You will use the Closing Entries tab in your workbook to do the following:

Close all temporary income statement accounts and create closing entries.

Step 10

You will use the Post Closing Trial Balance tab in your workbook to do the following:

Prepare the post-closing trial balance for the next accounting period.

Step 11

You will use the Reversing Entries tab in your workbook to do the following:

Prepare reversing entries.

The information is listed below. Steps 8 through 11.

thanks

Peyton Approved
Trial Balance
2014
	Unadjusted trial balance		Adjusting entries		Adjusted trial balance
Account	Debit	Credit	Debit	Credit	Debit	Credit
Cash	48,352.75				48,352.75
Baking Supplies	20,500.00			19,400.00	1,100.00
Merchandise Inventory	175.65				175.65
Prepaid Rent	1,500.00				1,500.00
Prepaid Insurance	1,200.00			1,200.00	-
Baking Equipment	5,000.00				5,000.00
Misc. Supplies	600.00			550.00	50.00
Accounts Receivable	10,300.00				10,300.00
Notes Payable		10,000.00				10,000.00
Accounts Payable		7,000.00				7,000.00
Wages Payable		1,872.00				1,872.00
Common Stock		20,000.00				20,000.00
Dividends	3,000.00				3,000.00
Bakery Sales		60,000.00				60,000.00
Merchandise Sales		221.00				221.00
Baking Supplies Expense			19,400.00		19,400.00
Rent Expense	4,500.00				4,500.00
Insurance Expense	-		1,200.00		1,200.00
Misc. Expense	250.00		550.00		850.00
Business License Expense	375.00				375.00
Advertising Expense	200.00				200.00
Wages Expense	2,892.00				2,892.00
Telephone Expense	90.00				90.00
COGS	157.60				157.60
Depreciation Expense	-		208.33		208.33
Accumulated Depreciation		-		208.33		208.33
Interest expense	-		1,800.00		1,800.00
Accrued interest payable		-		1,800.00		1,800.00