Step 8: Prepare the financial statements Use your adjusted trial balance to prepare the income statement, statement of owner's 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. This completes your workbook! Wage calculation data: Step 5: Prepare the Unadjusted Trial Balance Use the t account balances completed in the previous step to prepare the unadjusted trial balance portion of the Trial Balance tab in your workbook. Amount cells are linked to the ending balance of the T accounts, so review the Trial Balance for accuracy. Step 6: You will use the "Adjusting Entries" tab in your workbook to complete the following entries. See sample for Depreciation of Baking Equipment. Take the adjusting entries from this worksheet and enter them into the trial balance on the Steps 5 and 7 Trial Balance tab. On December 31 , the following adjustments must be made: - Depreciation of baking equipment transferred to company on 12/13. Assume 1/2 month of depreciation in July using the straight-line method, and full month of depreciation for November and December. - Accrue interest for note payable. Assume a full month of interest for October. ( 5% annual interest on $5,000 loan from parents. - Record insurance used for the year. - Actual baking supplies on-hand as of December 31st is $1400. - Misc. supplies on-hand as of December 31st is $250. Step 7: Apply adjusting entries to the trial balance to create the adjusted trial balance. Adjusting entries from Step 6 will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial balance. Amount cells are linked to the ending balance of the T accounts, so review the Adjusted Trial Balance for accuracy. December 8- Receive payments from customers toward accounts receivable in amount of $3500 December 10- pay November telephone bill December 11-purchase baking supplies in amount of \$ 7000 from vendor on account. December 13- Paid on supplies vendor account in amount of $5000 December 15- Accrue employee wages for period of December 1st through December 15th December 15 - Pay rent on bakery space $1500 December 15-Record merchandise sales transaction. See inventory valuation tab for details. December 15-Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details. December 20- Pay employee for period ending 12/15 December 20-Purchase merchandise inventory for resale to customers. See inventory valuation tab for details. December 24- Record sales of merchandise to customers. See inventory valuation tab for details. December 24- Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details. December 30- Purchase merchandise inventory for resale to customers. See inventory valuation tab for details. December 30-Accrue employee wages for period of December 16th through December 30th Total December bakery sales $25,000.$6,000 of these sales on accounts receivable. ep 4: Post entries to T accounts. s found in automated accounting systems, the T accounts page in ur workbook is automatically posted with all journal entries to the propriate ledger account and calculation account balances as of ecember 31 st. Review these to ensure they are accurate. Step 3: Many customers have been asking for more hypo-allergenic oroducts, so in December you start carrying a line of hypoallergenic shampoos on a trial basis. The following information elates to the purchase and sales of the shampoo: You use the perpetual inventory method using FIFI valuation nethod (cost flow assumption). Please see the Inventory Valuation tab in your workbook, to review application of costs using the FIFO method based on purchase and sales information. You will copy the journal entries from the inventory valuation page into your journal for the month of December to ensure the impact of merchandising is reflected in your reporting. Complete the following transactions in the December Journal Entries tab in your workbook. December 1- paid dividends to self in amount of $4000 December 5-pay employee for period ending 11/30 December 7-Purchase merchandise for resale. See inventory valuation (blue) tab for details. December 8- Receive payments from customers toward accounts receivable in amount of $3500 December 10- pay November telephone bill December 11-purchase baking supplies in amount of $7000 from vendor on account. December 13- Paid on supplies vendor account in amount of $5000 December 15 - Accrue employee wages for period of December 1st through December 15th December 15- Pay rent on bakery space $1500 December 15-Record merchandise sales transaction. See inventory valuation tab for details. December 15-Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details. December 20- Pay employee for period ending 12/15 December 20-Purchase merchandise inventory for resale to customers. See inventory valuation tab for details. December 24- Record sales of merchandise to customers. See inventory valuation tab for details. December 24- Record impact of sales transaction on COGS October 31- Accrue wages earned for employee for period of 16th through 31 st of October (Wage calculations table is provided for you, below) Total July bakery sales were $15,000. $6000 of these sales on accounts receivable tep 2: omplete the following transactions in the November Journal intries tab in your workbook November 5- paid employee for period ending 10/31 November 8-Receive payments from customers towards accounts receivable in amount of $3200. November 10 - paid October telephone bill November 15- Purchase additional baking supplies in amount of $5000 from vendor, on account. November 15 - Accrue wages earned for employee from period of 1st through 15th of November (Wage calculations table provided below) November 15-Pay rent on bakery space $1500 November 18-Receive payments from customers towards accounts receivable in amount of $2000 November 20- paid $5500 toward baking supplies vendor payable November 20- pay employee for period ending 11/15 November 22- $300 in misc. supplies purchased November 31- received telephone bill for November in amount of $45. Payment is due on December 10th. November 31- Accrue wages earned for employee for period of November 16th through November 31st (Wage calculations table provided below) November bakery sales total $20,000. $5,500 of this total on accounts receivable. ep 1: omplete the following in the "October Journal Entries" tab in ur workbook (be sure to look for the October Journal Entries b at the bottom of the Peyton Approved Student Workbook). The following events occur in October 2021: October 1 - You take $12,000 from your personal savings account and buy common stock in Peyton Approved. October 1-Purchase $8500 in baking supplies from vendor, on account October 3 - Your parents lend the company $5,000 cash, in exchange for a two-year, 5% note payable. Interest and the principal are repayable at maturity. October 7 - Pay $3000 toward lease agreement for bakery space. The agreement is for 1 year. The rent is $1,500 per month, last month's rent was required at time of lease agreement. Lease period is effective October 1st2021 through September 30th,2022. October 10 Pay $375 to the county for a business license. October 11 - Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipment- use misc. exp.). October 13 - You have baking equipment, including an oven and mixer, which you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $8,500, and you transfer the equipment into the business in exchange for additional common stock. The equipment has a 5-year useful life and $1,000 salvage value. October 13 - Pay $200 for business cards/flyers/posters/ads to use for advertising. October 14 - Pay $450 for office supplies. October 15 - Hire part-time helper to be paid $12 per hour. Pay periods are the 1st through the 15th and 16th through the end of the month with paydays being the 20th for the first pay period and the 5th of the following month for the second pay period. (No entry required on this date; for informational purposes only) October 30- Received telephone bill for October in amount of $45. Payment is due on November 10th October 31 - Pay $1,200 for a 12-month insurance policy. Policy effective dates November 1, 2020 through October 31st, 2021 October 31 - Accrue wages earned for employee for period of ACC 2301 Final Project Peyton Approved Baking Company Instructions For this deliverable, you will complete the accounting cycle and prepare financial statements that will provide the result you need to assess the success of business operations. Below you will find the data required to make entries in your accounting workbook. Remember that you are following the business transactions from the initial stage of analysis and recording, through the reporting process. These transactions will include: - the initial setup of the business - cash and credit sales - making payments to vendors - paying store employees - managing debt It will help you to print this document as you are making your entries in your workbook. The cumulative problems in Connect and the material in your textbook have prepared you and can be used as a reference to assist you in completing this assignment. You MUST use the MS Excel workbook provided to complete this project. Account names are selected from the choices available in the pull-down menus in each gray cell. You will enter amounts into the Debit/Credit cells. ONLY ENTER INFORMATION IN THE GRAY CELLS. These cells are connected via links to automatically update other cells in the workbook, which makes things easier for you. The following steps are included: Step 1: Complete the following in the "October Journal Entries" tab in your workbook (be sure to look for the October Journal Entries tab at the bottom of the Peyton Approved Student Workbook). The following events occur in October 2021: October 1 - You take $12,000 from your personal savings account and buy common stock in Peyton Approved. October 1-Purchase $8500 in baking supplies from vendor, on account Step 8: Prepare the financial statements Use your adjusted trial balance to prepare the income statement, statement of owner's 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. This completes your workbook! Wage calculation data: Step 5: Prepare the Unadjusted Trial Balance Use the t account balances completed in the previous step to prepare the unadjusted trial balance portion of the Trial Balance tab in your workbook. Amount cells are linked to the ending balance of the T accounts, so review the Trial Balance for accuracy. Step 6: You will use the "Adjusting Entries" tab in your workbook to complete the following entries. See sample for Depreciation of Baking Equipment. Take the adjusting entries from this worksheet and enter them into the trial balance on the Steps 5 and 7 Trial Balance tab. On December 31 , the following adjustments must be made: - Depreciation of baking equipment transferred to company on 12/13. Assume 1/2 month of depreciation in July using the straight-line method, and full month of depreciation for November and December. - Accrue interest for note payable. Assume a full month of interest for October. ( 5% annual interest on $5,000 loan from parents. - Record insurance used for the year. - Actual baking supplies on-hand as of December 31st is $1400. - Misc. supplies on-hand as of December 31st is $250. Step 7: Apply adjusting entries to the trial balance to create the adjusted trial balance. Adjusting entries from Step 6 will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial balance. Amount cells are linked to the ending balance of the T accounts, so review the Adjusted Trial Balance for accuracy. December 8- Receive payments from customers toward accounts receivable in amount of $3500 December 10- pay November telephone bill December 11-purchase baking supplies in amount of \$ 7000 from vendor on account. December 13- Paid on supplies vendor account in amount of $5000 December 15- Accrue employee wages for period of December 1st through December 15th December 15 - Pay rent on bakery space $1500 December 15-Record merchandise sales transaction. See inventory valuation tab for details. December 15-Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details. December 20- Pay employee for period ending 12/15 December 20-Purchase merchandise inventory for resale to customers. See inventory valuation tab for details. December 24- Record sales of merchandise to customers. See inventory valuation tab for details. December 24- Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details. December 30- Purchase merchandise inventory for resale to customers. See inventory valuation tab for details. December 30-Accrue employee wages for period of December 16th through December 30th Total December bakery sales $25,000.$6,000 of these sales on accounts receivable. ep 4: Post entries to T accounts. s found in automated accounting systems, the T accounts page in ur workbook is automatically posted with all journal entries to the propriate ledger account and calculation account balances as of ecember 31 st. Review these to ensure they are accurate. Step 3: Many customers have been asking for more hypo-allergenic oroducts, so in December you start carrying a line of hypoallergenic shampoos on a trial basis. The following information elates to the purchase and sales of the shampoo: You use the perpetual inventory method using FIFI valuation nethod (cost flow assumption). Please see the Inventory Valuation tab in your workbook, to review application of costs using the FIFO method based on purchase and sales information. You will copy the journal entries from the inventory valuation page into your journal for the month of December to ensure the impact of merchandising is reflected in your reporting. Complete the following transactions in the December Journal Entries tab in your workbook. December 1- paid dividends to self in amount of $4000 December 5-pay employee for period ending 11/30 December 7-Purchase merchandise for resale. See inventory valuation (blue) tab for details. December 8- Receive payments from customers toward accounts receivable in amount of $3500 December 10- pay November telephone bill December 11-purchase baking supplies in amount of $7000 from vendor on account. December 13- Paid on supplies vendor account in amount of $5000 December 15 - Accrue employee wages for period of December 1st through December 15th December 15- Pay rent on bakery space $1500 December 15-Record merchandise sales transaction. See inventory valuation tab for details. December 15-Record impact of sales transaction on COGS and the inventory asset. See inventory valuation tab for details. December 20- Pay employee for period ending 12/15 December 20-Purchase merchandise inventory for resale to customers. See inventory valuation tab for details. December 24- Record sales of merchandise to customers. See inventory valuation tab for details. December 24- Record impact of sales transaction on COGS October 31- Accrue wages earned for employee for period of 16th through 31 st of October (Wage calculations table is provided for you, below) Total July bakery sales were $15,000. $6000 of these sales on accounts receivable tep 2: omplete the following transactions in the November Journal intries tab in your workbook November 5- paid employee for period ending 10/31 November 8-Receive payments from customers towards accounts receivable in amount of $3200. November 10 - paid October telephone bill November 15- Purchase additional baking supplies in amount of $5000 from vendor, on account. November 15 - Accrue wages earned for employee from period of 1st through 15th of November (Wage calculations table provided below) November 15-Pay rent on bakery space $1500 November 18-Receive payments from customers towards accounts receivable in amount of $2000 November 20- paid $5500 toward baking supplies vendor payable November 20- pay employee for period ending 11/15 November 22- $300 in misc. supplies purchased November 31- received telephone bill for November in amount of $45. Payment is due on December 10th. November 31- Accrue wages earned for employee for period of November 16th through November 31st (Wage calculations table provided below) November bakery sales total $20,000. $5,500 of this total on accounts receivable. ep 1: omplete the following in the "October Journal Entries" tab in ur workbook (be sure to look for the October Journal Entries b at the bottom of the Peyton Approved Student Workbook). The following events occur in October 2021: October 1 - You take $12,000 from your personal savings account and buy common stock in Peyton Approved. October 1-Purchase $8500 in baking supplies from vendor, on account October 3 - Your parents lend the company $5,000 cash, in exchange for a two-year, 5% note payable. Interest and the principal are repayable at maturity. October 7 - Pay $3000 toward lease agreement for bakery space. The agreement is for 1 year. The rent is $1,500 per month, last month's rent was required at time of lease agreement. Lease period is effective October 1st2021 through September 30th,2022. October 10 Pay $375 to the county for a business license. October 11 - Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipment- use misc. exp.). October 13 - You have baking equipment, including an oven and mixer, which you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $8,500, and you transfer the equipment into the business in exchange for additional common stock. The equipment has a 5-year useful life and $1,000 salvage value. October 13 - Pay $200 for business cards/flyers/posters/ads to use for advertising. October 14 - Pay $450 for office supplies. October 15 - Hire part-time helper to be paid $12 per hour. Pay periods are the 1st through the 15th and 16th through the end of the month with paydays being the 20th for the first pay period and the 5th of the following month for the second pay period. (No entry required on this date; for informational purposes only) October 30- Received telephone bill for October in amount of $45. Payment is due on November 10th October 31 - Pay $1,200 for a 12-month insurance policy. Policy effective dates November 1, 2020 through October 31st, 2021 October 31 - Accrue wages earned for employee for period of ACC 2301 Final Project Peyton Approved Baking Company Instructions For this deliverable, you will complete the accounting cycle and prepare financial statements that will provide the result you need to assess the success of business operations. Below you will find the data required to make entries in your accounting workbook. Remember that you are following the business transactions from the initial stage of analysis and recording, through the reporting process. These transactions will include: - the initial setup of the business - cash and credit sales - making payments to vendors - paying store employees - managing debt It will help you to print this document as you are making your entries in your workbook. The cumulative problems in Connect and the material in your textbook have prepared you and can be used as a reference to assist you in completing this assignment. You MUST use the MS Excel workbook provided to complete this project. Account names are selected from the choices available in the pull-down menus in each gray cell. You will enter amounts into the Debit/Credit cells. ONLY ENTER INFORMATION IN THE GRAY CELLS. These cells are connected via links to automatically update other cells in the workbook, which makes things easier for you. The following steps are included: Step 1: Complete the following in the "October Journal Entries" tab in your workbook (be sure to look for the October Journal Entries tab at the bottom of the Peyton Approved Student Workbook). The following events occur in October 2021: October 1 - You take $12,000 from your personal savings account and buy common stock in Peyton Approved. October 1-Purchase $8500 in baking supplies from vendor, on account