InstructionsChart of AccountsAsset AccountsLiability AccountsEqu.docx

Instructions
Chart of AccountsAsset AccountsLiability AccountsEquity
AccountsAcct #Acct #Acct #Cash101Notes Payable201Common
Stock301Baking Supplies102Accounts
Payable202Dividends302Prepaid Rent103Wages
Payable203Prepaid Insurance104Interest Payable 204Baking
Equipment105Misc. Supplies106Accounts Receivable107
Accumulated Depreciation108Merchandise Inventory
109Revenue AccountsThis chart of accounts should help you
identify the appropriate accounts to record to as you are
analyzing and journaling transactions for this workbook. There
is nothing to complete on this page; this is simply a resource for
you.Acct #Bakery Sales401Merchandise Sales402Expense
AccountsAcct #Baking Supplies Expense501Rent
Expense502Insurance Expense503Misc. Expense504Business
License Expense505Advertising Expense506Wages
Expense507Telephone Expense508Interest
Expense509Depreciation Expense510Misc. Supplies
Expense511Cost of Goods Sold512
Step 1 July JournalPeyton ApprovedGeneral Journal Entries Jul-
14DateAccountsDebitCredit1-JulCash15,000.00 Common
Stock15,000.00Contributed cash for common stock1-JulBaking
Suppllies 8,500.00 Vendor8,500.00To record Baking
Supplies purchased 3-JulCash 10,000.00 Notes Payable
10,000.00To record loan from parents 7-JulLease Expense
Advance1,500.00 Cash1,500.003,000.00To Record Lease
Agreements10-JulBusiness License 375.00 Cash 375.00To
record Buisness License Fee11-JulMiscellaneous Expense250.00
Cash250.00To record Misc. Exp. cash resgister 13-JulBaking
Equipment 5,000.00 Common Stock5,000.00To record
purchase baking equipment13-JulAdvertising Expense200.00
Cash200.00To record Advertising Expense 14-JulMiscellaneous
Supplies300.00 Cash300.00To record Misc. Supplies 15-
JulNo Entry Required 30-JulTelephone Expenses45.00

Accounts Payable 45.00To record Telephone expense 31-
JulPrepaid Insurance1,200.00 Cash1,200.00To record
Insurance payment 31-JulWages Expenses 120.00Wages payble
120.00To record Wage expense 31-JulCash 10,000.00Accounts
Receivable 5,000.00 Bakery Sales15,000.00
Step 2 August JournalPeyton ApprovedGeneral Journal Entries
Aug-14DateAccountsDebitCredit31-JulWages
Payable120.00Cash120.008-AugCash3,200.00 Accounts
Receivable 3,200.0010-AugAccounts Payable45.00 Cash
45.0015-AugBaking Supplies 5,000.00 Accounts Payables
5,000.0015-AugWages Expense 480.00 Wages Payable
480.0015-AugRent Expense 1,500.00 Cash 1,500.0018-
AugCash 1,000.00 Accounts Receivables1,000.0020-
AugAccounts Payables 8,500.00 Cash8,500.0020-AugWages
Payable480.00 Cash 480.0022-AugMiscellaneous Supplies
300.00 Cash 300.0031-AugTelephone
Expense45.00Accounts Payable45.0031-AugWage
Expenses420.00 Wages Payable 420.0031-AugCash
12,500.00Accounts Receivable 7,500.00 Bakery
Sales20,000.00
Step 3 September JournalPeyton ApprovedGeneral Journal
Entries Sep-14DateAccountsDebitCredit1-
SepDividends3,000.00Cash3,000.005-SepSalary and Wages
Payable420.00Cash420.007-SepMerchandise
Inventory60.00Cash60.008-SepCash4,000.00Accounts
Receivable4,000.0010-SepAccounts Payable45.00Cash45.0011-
SepBaking Supplies 7,000.00Accounts Payable7,000.0013-
SepAccounts Payable5,000.00Cash5,000.0015-SepWages
Expense456.00Wages Payable456.0015-SepRent
Expense1,500.00Cash1,500.0015-SepCash68.00Merchandise
Sales revenue68.0015-SepCost of goods sold48.00Merchandise
Inventory48.0020-SepWages Payable456.00Cash456.0020-
SepMerchandise Inventory122.00Cash122.0024-
SepCash153.00Merchandise Sales Revenue153.0024-SepCost of
goods sold109.60Merchandise Inventory109.6030-
SepMerchandise Inventory151.25Cash151.2530-SepWages

Expense480.00Wages Payable480.0030-SepCash
6,000.00Accounts Receivable19,000.00Bakery Sales25,000.00
Inventory ValuationFIFOPurchasesDatePurchasesSalesEnding
InventoryDrCr9/7: 10 bottles purchased at $67-Sep10$ 6.00$
60.0010$ 6.00$ 60.007-SepMerchandise Inventory (10 x
$6)60.009/20: 20 bottles purchased at $6.10 Cash60.009/30: 25
bottles purchased at $6.0515-Sep8$ 6.00$ 48.002$ 6.00$
12.00Purchased inventorySales – selling price, $8.50 a
bottle9/15: 8 bottles20-Sep20$ 6.10$ 122.002$ 6.00$
12.0015-SepCash (8 x $8.50)68.009/24: 18 bottles20$ 6.10$
122.00 Merchandise Sales Revenue68.0022$ 134.00Record
sale of inventory24-Sep2$ 6.00$ 12.0015-SepCost of Goods
Sold (8 X $6)48.0016$ 6.10$ 97.604$ 6.10$ 24.40
Merchandise Inventory48.00$ 109.60Recorded the cost of
goods sold30-Sep25$ 6.05$ 151.254$ 6.10$ 24.4020-
SepMerchandise Inventory (20 x $6.10 )122.0025$ 6.05$
151.25 Cash122.0029$ 175.6555$ 333.2526$ 157.6029$
175.6524-SepCash (18 x 8.50)153.00 Merchandise Sales
Revenue153.00Record sale of inventory24-SepCost of Goods
Sold (2 x $6)+(16 x $6.10)109.60 Merchandise
Inventory109.60Recorded the cost of goods sold30-
SepMerchandise Inventory (25 x $6.05)151.25
Cash151.25LIFOPurchasesSalesEnding Inventory7-
SepMerchandise Inventory (10 x $6)60.007-Sep10$ 6.00$
60.0010$ 6.00$ 60.00 Cash60.00Purchased inventory15-
Sep8$ 6.00$ 48.002$ 6.00$ 12.0015-SepCash (8 x
$8.50)68.0020-Sep20$ 6.10$ 122.002$ 6.00$ 12.00
Merchandise Sales Revenue68.0020$ 6.10$ 122.00Record
sale of inventory22$ 134.0015-SepCost of Goods Sold (8 X
$6)48.0024-Sep18$ 6.10$ 109.802$ 6.00$ 12.00
Merchandise Inventory48.002$ 6.10$ 12.20Record inventory
reduction due to sale4$ 24.2020-SepMerchandise Inventory
(20 x $6.10)122.0030-Sep25$ 6.05$ 151.252$ 6.00$ 12.00
Cash122.002$ 6.10$ 12.2025$ 6.05$ 151.2524-SepCash
(18 x 8.50)153.0029$ 175.45 Merchandise Sales
Revenue153.0055$ 333.2526$ 157.8029$ 175.45Record sale

of inventory24-SepCost of Goods Sold (18 x $6.10)109.80
Merchandise Inventory109.80Record inventory reduction due to
sale30-SepMerchandise Inventory (25 x $6.05)151.25
Cash151.25weighted averagePurchasesSalesEnding Inventory7-
SepMerchandise Inventory (10 x $6)60.007-Sep10$ 6.00$
60.0010$ 6.00$60 Cash60.00Purchased inventory15-Sep8$
6.00$ 48.002$ 6.00$ 12.0015-SepCash (8 x $8.50)68.0020-
Sep20$ 6.10$ 122.002$ 6.00$ 12.00 Merchandise Sales
Revenue68.0020$ 6.10$ 122.00per unit Record sale of
inventory22$ 134.00$6.0915-SepCost of Goods Sold (8 X
$6)48.0024-Sep18$ 6.09$ 109.624$ 24.38 Merchandise
Inventory48.00Record inventory reduction due to sale30-Sep25$
6.05$ 151.254$ - 025$ 6.05$ 151.2520-SepMerchandise
Inventory (20 x $6.10)122.0055$ 333.2526157.6229$
151.25$5.22 Cash122.0024-SepCash (18 x 8.50)153.00
Merchandise Sales Revenue153.00Record sale of inventory24-
SepCost of Goods Sold (18 x $6.09)109.62 Merchandise
Inventory109.62Record inventory reduction due to sale30-
SepMerchandise Inventory (25 x $6.05)151.25 Cash151.25
Step 4 T accountsdateCashdatedateNotes PayabledateBusiness
License expCommon Stock1-Jul15,000.003,000.007-Jul10,0003-
Jul10-Jul37515,0001-Jul3-Jul10,000.00375.0010-Jul5,00013-
Jul31-Jul5,000.00250.0011-Jul10,0003758-
Aug3,200.00200.0013-Jul10,00037520,00018-
Aug1,000.00300.0014-Jul31-Aug12,500.001,200.0031-Jul8-
Sep4,000.00120.005-Aug15-Sep68.0045.0010-Aug24-
Sep153.001,500.0015-Aug30-Sep6,000.008,500.0020-
Aug480.0020-Aug300.0022-Aug3,000.001-Sep420.005-
Sep60.007-SepAccounts Rec.Insurance expense45.0010-Sep31-
Jul1000032008-Aug5,000.0013-Sep31-Aug7500100018-
Aug1,500.0015-Sep30-Sep1900040008-Sep456.0020-
Sep122.0020-SepCOMPLETION OF STEPS 1- 4
DELIVERABLE:151.2530-SepCONGRATULATIONS! YOU
ARE NOW READY TO SUBMIT YOURWORKBOOK TO
COMPLETE THE 3-3 CHECKPOINT
REQUIREMENT28300056,921.0027,024.2529,896.75Misc.

expenseBaking equipmentAdvertising expense11-Jul25013-
Jul5,00013-Jul2002005,000250Baking suppliesMisc.
suppliesRent expense1-Jul8,50014-Jul30015-Aug1,50015-
Aug500022-Aug30015-Sep150011-
Sep700020,500600020,5006003,000Prepaid rentPrepaid
insuranceBakery Sales7-Jul3,00031-Jul1,20015,00031-
Jul20,00031-Aug25,00030-Sep1,20060,0003,000Accounts
payableSalary and wages expenseSalaries and wages payable10-
Aug4585001-Jul31-Jul1205-Aug12012031-Jul20-
Aug8,5004530-Jul15-Aug48020-Aug48048015-Aug10-
Sep455,00015-Aug31-Aug4205-Sep42042031-Aug13-
Sep5,0004530-Aug15-Sep45620-Sep45645615-Sep7,00011-
Sep30-Sep48048030-Sep13,59020,5907,000Telephone
expense1,9561,4761,95630-Jul4548030-
Aug45Dividendsdepreciation expenseacc dep1-
Sep3,000Adj.Adj.903,00000baking supplies expenseInterest
expenseInterest payableAdjadjadj000misc supplies
expenseCOGS LIF0COGS FIFOAdj15-Sep48.0015-Sep48.0024-
Sep109.8024-Sep109.600157.80157.60Merchandise Sales
Revenue157.80157.6068.0015-Sep153.0024-Sep221.00COGS
Weighted Avg.Merch. Inv. FIFOMerch. Inv. LIFOMerch. Inv.
Avg. 15-Sep48.007-Sep60.0048.0015-Sep7-Sep60.0048.0015-
Sep7-Sep60.0048.0015-Sep24-Sep109.6220-
Sep122.00109.6024-Sep20-Sep122.00109.8024-Sep20-
Sep122.00109.6224-Sep30-Sep151.2530-Sep152.2530-
Sep151.25157.62333.25157.60334.25157.80333.25157.62157.62
175.65176.45175.63
Steps 5 and 7 Trial BalancePeyton ApprovedTrial
Balance2014Unadjusted trial balanceAdjusting entriesAdjusted
trial
balanceAccountDebitCreditDebitCreditDebitCreditCashBaking
SuppliesMerchandise Inventory Prepaid RentPrepaid
InsuranceBaking EquipmentMisc. SuppliesAccounts
ReceivableNotes PayableAccounts PayableWages
PayableCommon StockDividendsBakery SalesMerchandise
SalesBaking Supplies ExpenseRent ExpenseInsurance

ExpenseCOMPLETION OF STEPS 5-7 DELIVERABLE:Misc.
ExpenseCONGRATULATIONS! YOU ARE NOW READY TO
SUBMIT YOURBusiness License ExpenseWORKBOOK TO
COMPLETE THE 4-3 CHECKPOINT
REQUIREMENTAdvertising ExpenseWages ExpenseTelephone
ExpenseCOGS Depreciation Expense208.33Accumulated
Depreciation208.33Misc Supplies Expense*Interest
Expense*Interest Payable*- 0- 0208.33208.33- 0- 0- 0*These
accounts will not be utilized before the adjusting process. They
should have zero balance in the unadjusted trial balance.
Step 6 Adjusting EntriesPeyton ApprovedAdjusting Journal
Entries 2014DateAccountsDebitCredit30-SepDepreciation
Expense208.33 accumulated depreciation208.33
Step 8 Income StatementPeyton ApprovedIncome StatementFor
Qtr. Ending 9/30/2014
Step 8 Statement of Retained EaPeyton ApprovedStatement of
Retained EarningsFor Qtr. Ending 9/30/2014
Step 8 Balance SheetPeyton ApprovedBalance SheetAs of
September 30, 2014AssetsLiabilities and Owners' Equity
Step 9 Closing EntriesPeyton ApprovedClosing Entries
9/30/14DateAccountsDebitCredit
Step 10 Post Closing Trial BalaPeyton ApprovedPost Closing
Trial Balance9/30/14Unadjusted Trial
BalanceAccountDebitCredit
Step 11 Reversing EntriesPeyton ApprovedReversing Entries
9/30/14DateAccountsDebitCreditCOMPLETION OF STEPS 8-
11 DELIVERABLE:CONGRATULATIONS! YOU ARE NOW
READY TO SUBMIT YOURCOMPLETED WORKBOOK
(STEPS 1 - 11)TO COMPLETE THE 6-2 CHECKPOINT
REQUIREMENTACC 201 Final Project Peyton Approved
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 for a three-month period 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. Your textbook prepares you and can
be used as a reference to assist you in completing this
assignment. You should begin this project in Module Two.
ACC 201 Final Project Peyton Approved 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 work book. Remember that you are following the
business transactions for a three-month period from the initial
stage of analysis and
recording, through the reporting process. These transactions
will include:
It will help you to print this document as you are making your

entries in your workbook. Your textbook prepare s you and can
be used as a reference to assist you in completing this
assignment. You should begin
this project in Module Two.
Step 1:
Complete the following in the “July Journal Entries” tab in your
workbook (be sure to look for the July Journal Entries tab at the
bottom of the Peyton Approved Student Workbook).
The following events occur in July 2014:
July 1 – You take $15,000 from your personal savings account
and buy common stock in Peyton
Approved.
July 1-Purchase $8500 in baking supplies from vendor, on
account
July 3 – Your parents lend the company $10,000 cash, in
exchange for a two-year, 6% note payable. Interest and the
principal are repayable at maturity.
July 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 July 1st 2014 through June 30th, 2015.
July 10 – Pay $375 to the county for a business license.
July 11 – Purchase a cash register for $250 (deemed to be not
material enough to qualify as depreciable equipment—use misc.
exp.).
July 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 $5,000, and you transfer the
equipment into the business in exchange for additional common
stock. The equipment has a 5-year useful life.
July 13 – Pay $200 for business cards/flyers/posters/ads to use
for advertising.
July 14 – Pay $300 for miscellaneous (use misc. supplies).
July 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)
July 30- Received telephone bill for July in amount of $45.
Payment is due on August 10th
July 31 – Pay $1,200 for a 12-month insurance policy. Policy
effective dates August 1, 2014 through July 31st, 2015
July 31- Accrue wages earned for employee for period of 16th
through 31st of July
(Wage calculations table is provided for you, below)
Total July bakery sales were $15,000. $5000 of these sales on
accounts receivable
Step 1:
Complete the following in the “July Journal Entries” tab in
your workbook (be sure to look for the July
Journal Entries tab at the bottom of the Peyton Approved
Student Workbook).
The following events occur in July 2014:

July 1 – You take $15,000 from your personal savings account
and buy common stock in Peyton
Approved.
July 1-Purchase $8500 in baking supplies from vendor, on
account
July 3 – Your parents lend the company $10,000 cash, in
exchange for a two-year, 6% note
payable. Interest and the principal are repayable at maturity.
July 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 agreeme nt. Lease
period is effective July 1
st
2014 through June 30
th
, 2015.
July 10 – Pay $375 to the county for a business license.
July 11 – Purchase a cash register for $250 (deemed to be not
material enough to qualify as
depreciable equipment—use misc. exp.).
July 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 $5,000, and you transfer the
equipment into the business in
exchange for additional common stock. The equipment has a 5 -
year useful life.

July 13 – Pay $200 for business cards/flyers/posters/ads to use
for advertising.
July 14 – Pay $300 for miscellaneous (use misc. supplies).
July 15 – Hire part-time helper to be paid $12 per hour. Pay
periods are the 1
st
through the 15
th
and 16
th
through the end of the month with paydays being the 20
th
for the first pay period and
the 5
th
of the following month for the second pay period. (No entry
required on this date; for
informational purposes only )
July 30- Received telephone bill for July in amount of $45.
Payment is due on August 10
th
July 31 – Pay $1,200 for a 12-month insurance policy. Policy
effective dates August 1, 2014
through July 31
st
, 2015
July 31- Accrue wages earned for employee for period of 16
th
through 31st of July

(Wage calculations table is provided for you, below)
Total July bakery sales were $15,000. $5000 of these sales on
accounts receivable
Wage calculation data:
Month
Hours
Rate
Pay
31-Jul
10
12
120
15-Aug
40
12
480
31-Aug
35
12
420
15-Sep
38
12
456
30-Sep
40
12
480
Wage calculation data:
Month Hours Rate Pay
31-Jul 10 12 120
15-Aug 40 12 480
31-Aug 35 12 420
15-Sep 38 12 456

30-Sep 40 12 480
Step 2:
Complete the following transactions in the August Journal
Entries tab in your workbook
August 5- paid employee for period ending 7/31
August 8-Receive payments from customers towards accounts
receivable in amount of $3200.
August 10 – paid July telephone bill
August 15- Purchase additional baking supplies in amount of
$5000 from vendor, on account.
August 15 – Accrue wages earned for employee from period of
1st through 15th of August
(Wage calculations table provided below)
August 15-Pay rent on bakery space $1500
receivable in amount of $1000
August 20- paid $8500 toward baking supplies vendor payable
August 20- pay employee for period ending 8/15
August 22- $300 in misc. supplies purchased
August 31- received telephone bill for August in amount of $45.
Payment is due on September 10th.
August 31- Accrue wages earned for employee for period of
August 16th through August 31st

August bakery sales total $20,000. $7,500 of this total on
accounts receivable.
Step 2:
Complete the following transactions in the August Journal
Entries tab in your workbook
August 5-
paid employee for period ending 7/31
receivable in amount of $3200.
August 10 – paid July telephone bill
August 15- Purchase additional baking supplies in amount of
$5000 from vendor, on account.
August 15 – Accrue wages earned for employee from period of
1
st
through 15
th
of August
(Wage calculations table provided below )
August 15-Pay rent on bakery space $1500
receivable in amount of $1000
August 20- paid $8500 toward baking supplies vendor payable

August 20- pay employee for period ending 8/15
August 22- $300 in misc. supplies purchased
August 31- received telephone bill for August in amount of $45.
Payment is due on September
10
th
.
August 31- Accrue wages earned for employee for period of
August 16
th
through August 31
st
August bakery sales total $20,000. $7,500 of this total on
Step 3:
Many customers have been asking for more hypo-allergenic
products, so in September you start carrying a line of hypo-
allergenic shampoos on a trial basis. The following information
relates to the purchase and sales of the shampoo:
You use the perpetual inventory method. You are uncertain as to
which valuation method to use—FIFO, LIFO, or weighted
average, so you calculate inventory using all three and then
decide which one you would like to choose.
Please see the Inventory Valuation tab in your workbook, to
review application of costs using the FIFO, LIFO, and average
methods based on purchase and sales information. You will
choose the method you feel most appropriate, and bring the
journal entries from the inventory valuation page into your

journal for the month of September, to ensure the impact of
merchandising is reflected in your reporting.
Step 3:
Many customers have been asking for more hypo -allergenic
products, so in September you start
carrying a line of hypo-allergenic shampoos on a trial basis. The
following information relates to the
purchase and sales of the shampoo:
You use the perpetual inventory method. You are uncertain as to
which valuation method to use —FIFO,
LIFO, or weighted average, so you calculate inventory using all
three and then decide which one you
would like to choose.
Please see the Inventory Valuation tab in you r workbook, to
review application of costs using
the FIFO, LIFO, and average methods based on purchase and
sales information. You will choose
the method you feel most appropriate, and bring the journal
entries from the inventory
valuation page into your journal for the month of September, to
ensure the impact of
merchandising is reflected in your reporting.
Complete the following transactions in the September Journal
Entries tab in your workbook.
September 1- paid dividends to self in amount of $3000
September 5-pay employee for period ending 8/31
September 7-Purchase merchandise for resale. See inventory
valuation tab for details.
September 8- Receive payments from customers toward
accounts receivable in amount of
$4000

September 10- pay August telephone bill
September 11-purchase baking supplies in amount of $ 7,000
from vendor on account.
September 13- Paid on supplies vendor account in amount of
$5000
September 15- Accrue employee wages for period of September
1st through September 15th
September 15- Pay rent on bakery space $1500
September 15-Record merchandise sales transaction. See
inventory valuation tab for details.
September 15-Record impact of sales transaction on COGS and
the inventory asset.
See inventory valuation tab for details.
September 20- Pay employee for period ending 9/15
September 20-Purchase merchandise inventory for resale to
customers.
September 24- Record sales of merchandise to customers.
September 24- Record impact of sales transaction on COGS and
September 30- Purchase merchandise inventory for resale to
customers.

September 30-Accrue employee wages for period of September
16th through September 30th
Total September bakery sales $25,000. $6,000 of these sales on
Complete the following transactions in the September Journal
Entries tab in your workbook.
September 1- paid dividends to self in amount of $3000
September 5-pay employee for period ending 8/31
September 7-Purchase merchandise for resale. See inventory
valuation tab for details.
September 8- Receive payments from customers toward
accounts receivable in amount of
$4000
September 10- pay August telephone bill
September 11-purchase baking supplies in amount of $ 7,000
from vendor on account.
September 13- Paid on supplies vendor account in amount of
$5000
September 15- Accrue employee wages for period of September
1
st
through September 15
th
September 15- Pay rent on bakery space $1500

September 15-Record merchandise sales transaction. See
inventory valuation tab for details.
September 15-Record impact of sales transaction on COGS and
September 20- Pay employee for period endin g 9/15
September 20-Purchase merchandise inventory for resale to
customers.
September 24- Record sales of merchandise to customers.
September 24- Record impact of sales transaction on COGS and
September 30- Purchase merchandise inventory for resale to
customers.
September 30-Accrue employee wages for period of September
16
th
through September 30
th
Total September bakery sales $25,000. $6,000 of these sales on
a ccounts receivable.
Step 4: Post entries to t accounts.
Use the t accounts page in your workbook to post all journal
entries to the appropriate ledger account and calculate account

balances as of September 30th.
Step 4: Post entries to t accounts.
Use the t accounts page in your workbook to post all journal
entries to the appropriate ledger account
and calculate account balances as of September 30
th
.
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.
Step 6:
You will use the “Adjusting Entries” tab in your workbook to
complete the following entries. See sample for Depreciation of
Baking Equipment.
On September 30, the following adjustments must be made:
· Depreciation of baking equipment transferred to company on
7/13. Assume ½ month of depreciation in July using the
straight-line method.
· Accrue interest for note payable (Assume a full month of
interest for July).
· Record insurance used for the year.
· Actual baking supplies on-hand as of September 30th is
$1100.
· Misc. supplies on-hand as of September 30th is $50.
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.
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.
Step 6:
complete the following entries. See
sample for Depreciation of Baking Equipment.
7/13. Assume ½ month of
depreciation in July using the straight-line method.
interest for July).
-hand as of September 30
th
is $1100.
-hand as of September 30th is $50.
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.
Step 6:
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.
· Depreciation of baking equipment transferred to company on
7/13. Assume ½ month of depreciation in July using the
straight-line method.
· Accrue interest for note payable. Assume a full month of
interest for July. (6% annual interest on $10,000 loan from
parents.
· Record insurance used for the year.
· Actual baking supplies on-hand as of September 30th is
$1100.
· Misc. supplies on-hand as of September 30th is $50.
Step 6:
complete the following entries. See
sample for Depreciation of Baking Equipment. Take the
adjusting entries from this works heet and
enter them into the trial balance on the Steps 5 and 7 Trial
Balance tab.
7/13. Assume ½ month of
depreciation in July using the straight -line method.
interest for July . (6% annual interest on
$10,000 loan from parents.
-hand as of September 30
th
is $1100.

sc. supplies on-hand as of September 30th is $50.
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 8:
statement of owner’s equity, and
balance sheet. You must complete these statements in this order,
as there are interdependencies
among them.
Step 8:
Step 8:
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 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 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.
Step 11”
You will use the “Reversing Entries” tab in your workbook to
do the following:
Prepare reversing entries.

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