1. Luscious Layers Bakery
Hours of Operation:9am-9pm
Pies:
Pecanpie
Apple pie
LemonMeringue Pie
SweetPotatoPie
Cakes:
Devil’sFoodCake
RedVelvetCake
RegularCheese Cake
Chocolate Cheese Cake
CherryCheese Cake
Chocolate Cake
Lemon-CoconutCake
GermanChocolate Cake
Drinks:
Black coffee
Lattes
Milkused inLattes
Skimmilk
2% milk

2. Half and half
Soymilk
These pastriesare soldasregularcakes or cupcakes.
These pastriesare soldat the PastryStore shop andin grocerystores.
The Pastry Store doescateringevents:Weddings,Partiesetc.
Journal Entries
The company isfundedthrough$60,000 capital anda $40,000 loan.
February2016
2/15 The ownerplaced$60,000 intoLusciousLayers’bankaccount
2/15 The ownerborrowed$40,000 from a bank. The note requiresapaymentof principle and8%
interestinone year.
2/15 Paid$12,000 inadvance for six monthsrent
2/16 Bought cash registerfor$1,419.00
2/16 Paidadvertisingexpense
2/16 Paid$10,166.00 for 2 208V Single Phase Baker’sPrideBCO-E2Cyclone Seriesdoubledeckovens.(5
yearpersonalty)
2/17 Purchasedtablesandchairsfrom furniture store for$10,496.29 (7 yearpersonalty)
2/18 Purchased$10,438.57 on accountin inventory fromCostco
2/18 Purchased$2,059.35 in suppliesfrom Costco
2/19 Paysfreightchargesforshipmentof inventory$61.34
2/22 Duringthe lastpart of monthsold$6,247.49 worth of inventoryfor$4,326.47
2/28 Paidsalary to owner$1,458.33

3. 2/28 PaidUtilitybill $123.46
AdjustingEntries
For $40,000 Loan
$40,000 x .08 x 12/12 = $3,200
$3,200/12 = $266.67 paymentsinterestpermonth
$266.67/2 = $133.33 because of half month
Rentis paidformonth of February.
RentExpense $1000 debitandPrepaidrentcredit$1,000 because of half month
For OvensD
$10,166 for5 years
$10,166/60 months= $169.43 in depreciation
For Cash Register
$1,419/60 months= $23.65 indepreciation
For Furniture
$10,496.29/84 months= $124.96 indepreciation
3 foodpreparersworked Weekof Feb22-26
KelseyandMeredith workedat5 hrs perday $80 hrs 4 daysthisweek = $320 *2= $640
1 worked4 hrs perday $64 3 days thisweek =$192

4. 1 worked6 hrs perday
Total Salarydue $832
March 2016
3/1 Purchaseda refrigerateddeliverytruckforcateringevents $7,900 (5 year realty)
3/1 Paidadvertisingexpense $2,000
3/1 – Purchasedinventoryata cost of $13,489.23
3/1 – Freightchargesfor inventorypaid $61.34
3/2-3/12 – sold$11,354.45 in inventoryata cost of $9,393.69
3/4 Paidsalariesowedtoemployees from2/22- 2/26 $832
3/4 Interestfrom$40,000 loanpaid $133.33
3/5 – sold$764.34 in inventoryonaccountat a cost of $532.23 fora cateringevent.
3/8 – Purchased $3,025.84 insupplies
3/12 – Used$1,334.45 in supplies
3/13-3/26 sold $10,392.23 in inventoryata cost of $8,824.35
3/16- Subleasedaportionof the buildingtoa cookie store $2,500 forfour monthsinadvance
3/18 – Paidsalariestoemployeesforfirsthalf of the month $3,392
3/19 – Paid$6,394.27 for inventoryboughtonaccounton2/19
3/20 – Purchased $11,463.23 of inventoryonaccount
3/27-3/31 sold $3,397.29 of inventoryata cost of $2,039.48.
3/31- Interestexpense from$40,000 loan= $266.67
3/31- Salariesaccruedfromlasthalf of month $3,936
3/31 Depreciationexpenseforovens $169.43
3/31 Depreciationexpenseforcashregister $23.65
3/31 Depreciationexpenseforfurniture $124.96

5. 3/31 Depreciationexpenseforrefrigeratedtruck $131.67
3/31 Rent expensepaidfor$2,000
3/31 Used $1,438.24 insupplies
3/31 Collectamountonaccount fromcateringevent $764.34
3/31 Collects $500 rent fromcompanyLusciousLayer sublettedtoon3/16
3/31 pays utilitybill$343.47
3/31 pays the remaining $4,044.30 forinventorypurchasedonaccount on 2/19
3/31 pays principle onloan$3,200
3/31 Withdrawscash forowner’ssalary$3,250
From 2/27-3/4
Kelseyworked6hoursperday, 5 days = $480
Janie worked6hours perday, 4 days = $384
Darren worked5 hoursperday, 4 days= $320
Meredithworked6hours perday 4 days= $384
Total $1,568
Payroll
From 3/5-3/11
Kelseyworked6hoursperday, 5 days = $480
Janie worked6hours perday, 4 days = $384
Darren worked5 hoursperday, 4 days= $320
Meredithworked6hours perday 4 days= $384
Chanice worked4 hoursperday 4 days= $256
Total $1,824
From 3/12-318

6. Kelseyworked6hoursperday, 5 days = $480
Janie worked6hours perday, 4 days = $384
Meredithworked6hours perday 4 days= $384
Chanice worked7 hoursperday 5 days= $560
Total $1,808
From 3/19-3/25
Kelseyworked6hoursperday, 5 days = $480
Janie worked6hours perday, 4 days = $384
Darren worked6 hoursperday, 5 days= $480
Meredithworked6hours perday 4 days= $384
Chanice worked5 hoursperday 5 days= $400
Total $2,128
From 3/26-4/1 (tobe paidinApril)
Kelseyworked6hoursperday, 5 days = $480
Janie worked6hours perday, 4 days = $384
Darren worked6 hoursperday, 5 days= $480
Meredithworked6hours perday 4 days= $384
Chanice worked5 hoursperday 5 days= $400
$2,128