Luscious Layers Bakery recorded various transactions in February 2016 related to starting their business, including obtaining capital from owners, taking out a loan, purchasing equipment and supplies, and making their first sales. At the end of the month, adjusting entries were made for depreciation, accrued expenses, and inventory. The trial balance was prepared, showing assets of $108,820.16 and liabilities/equity of $111,721.94, resulting in a net loss of $2,901.78 for the month.

1. Luscious Layers Bakery
2016
15-Feb Cash 60,000.00$
Capital 60,000.00$
15-Feb Cash 40,000.00$
Notes Payable 40,000.00$
15-Feb Prepaid Rent (for 6 months) 12,000.00$
Cash 12,000.00$
16-Feb Machinery (cash register) 1,419.00$
Cash 1,419.00$
16-Feb Advertising Expense 2,000.00$
Cash 2,000.00$
16-Feb Machinery (for industrial ovens) 10,166.00$
Cash 10,166.00$
17-Feb Furniture and Fixtures 10,496.29$
Cash 10,496.29$
18-Feb Inventory 10,438.57$
Accounts Payable $10,438.57
18-Feb Supplies 2,059.35$
Cash $2,059.35
19-Feb Inventory (for inventory freight payament) 61.34$
Cash 61.34$
29-Feb Cash $6,247.49
Revenue $6,247.49
Cost of Goods Sold $4,326.47
Inventory $4,326.47
28-Feb Withdrawal (Salary paid to owner) $1,458.33
Cash $1,458.33
29-Feb Adjusting Entries Salary Expense (for 2/22 - 2/26) 832.00$
Salary Payable 832.00$
29-Feb Interest Expense 133.33$
Interest Payable 133.33$
29-Feb Rent Expense 1,000.00$
Prepaid Rent 1,000.00$
29-Feb Depreciation Expense (for machinery) 169.43$
Accumulated Depreciation 169.43$
29-Feb Depreciation Expense (cash register) 23.65$
Accumulated Depreciation 23.65$
29-Feb Depreciation Expense (for furniture) 124.96$
Accumulated Depreciation 124.96$
29-Feb Supplies Expense 539.43$
Supplies 539.43$
Balance Sheet Accounts
Cash Prepaid Rent Inventory Supplies
15-Feb 60,000.00$ 15-Feb 12,000.00$ 18-Feb $10,438.57 18-Feb $2,059.35
29-Feb
15-Feb 40,000.00$ 1,000.00$ 29-Feb $4,326.47 29-Feb
539.43$
15-Feb 11,000.00$
12,000.00$ $1,519.92
16-Feb 19-Feb 61.34$
1,419.00$
16-Feb $6,173.44
2,000.00$
16-Feb
10,166.00$
17-Feb
10,496.29$
18-Feb
$2,059.35
19-Feb
61.34$
29-Feb $6,247.49
28-Feb
$1,458.33
106,247.49$ 39,660.31$
66,587.18$
Machinery Furniture and Fixtures Accumulated Depreciation (for machinery) Accumulated Depreciation (for cash register
16-Feb 1,419.00$ 17-Feb 10,496.29$ 29-Feb 29-Feb
169.43$ 23.65$
16-Feb 10,166.00$
11,585.00$ 10,496.29$
Accumulated Depreciation (for furniture)
29-Feb
124.96$
Accounts Payable Notes Payable Salary Payable Interest Payable
18-Feb 15-Feb 29-Feb 29-Feb
$10,438.57 40,000.00$ 832.00$ 133.33$
Capital Withdrawal
15-Feb 28-Feb $1,458.33
60,000.00$
Income Statement Accounts
Sales Revenue Cost of Goods Sold
29-Feb 29-Feb $4,326.47
$6,247.49
Advertising Expense Salary Expense Interest Expense Rent Expense
16-Feb 2,000.00$ 29-Feb 832.00$ 29-Feb 133.33$ 29-Feb 1,000.00$
Depreciation Expense (for machinery) Depreciation Expense (for cash register) Depreciation Expense (for furniture)
29-Feb 169.43$ 29-Feb 23.65$ 29-Feb 124.96$
Supplies Expense
29-Feb 539.43$
Luscious Layers Bakery Luscious Layers Bakery
Unadjusted Trial Balance Adjusted Trial Balance
29-Feb-16 2/29/2016
Account Title Debits Credits Account Title Debits Credits Income Statement Balance Sheet
Cash 66,587.18$ Cash 66,587.18$ 66,587.18$
Accounts Receivable
Prepaid Rent 11,000.00$ Prepaid Rent 11,000.00$ 11,000.00$
Inventory $6,173.44 Inventory 6,173.44$ 6,173.44$
Supplies 1,519.92$ Supplies 1,519.92$ 1,519.92$
Machinery 11,585.00$ Machinery 11,585.00$ 11,585.00$
Furniture and Fixtures 10,496.29$ Furniture and Fixtures 10,496.29$ 10,496.29$
Accumulated Depreciation(machinery) 169.43$ Accumulated Depreciation(machinery) 169.43$ 169.43$
Accumulated Depreciation (cash register) 23.65$ Accumulated Depreciation (cash register) 23.65$ 23.65$
Accumulated Depreciation (furniture) 124.96$ Accumulated Depreciation (furniture) 124.96$ 124.96$
Accounts Payable $10,438.57 Accounts Payable 10,438.57$ 10,438.57$
Notes Payable 40,000.00$ Notes Payable 40,000.00$ 40,000.00$
Salary Payable 832.00$ Salary Payable 832.00$ 832.00$
Interest Payable 133.33$ Interest Payable 133.33$ 133.33$
Capital 60,000.00$ Capital 60,000.00$ 60,000.00$
Withdrawal $1,458.33 Withdrawal $1,458.33 $1,458.33
Sales Revenue $6,247.49 Sales Revenue $6,247.49 $6,247.49
Cost of Goods Sold 4,326.47$ Cost of Goods Sold 4,326.47$ 4,326.47$
Advertising Expense 2,000.00$ Advertising Expense 2,000.00$ 2,000.00$
Salary Expense 832.00$ Salary Expense 832.00$ 832.00$
Interest Expense 133.33$ Interest Expense 133.33$ 133.33$
Rent Expense 1,000.00$ Rent Expense 1,000.00$ 1,000.00$
Depreciation Expense 169.43$ Depreciation Expense 169.43$ 169.43$
Depreciation Expense 23.65$ Depreciation Expense 23.65$ 23.65$
Depreciation Expense 124.96$ Depreciation Expense 124.96$ 124.96$
Supplies Expense 539.43$ Suplies Expense 539.43$ 539.43$
117,969.43$ 117,969.43$ 117,969.43$ 117,969.43$ 9,149.27$ $6,247.49 108,820.16$ 111,721.94$
Net Loss 2,901.78$ 111,721.94$ 111,721.94$