(solution) I am trying to build the balance sheet however, I am stuck and

(solution) I am trying to build the balance sheet however, I am stuck and

I am trying to build the balance sheet however, I am stuck and cannot get it to balance correctly. I am sure I made a mistake somewhere but I can’t seem to find it, any help will be greatly appreciated.

Asset Accounts Liability Accounts
Acct # Cash
Baking Supplies
Prepaid Rent
Prepaid Insurance
Baking Equipment
Misc. Supplies
Accounts Receivable
Accumulated Depreciation Equity Accounts
Acct # 101 Notes Payable
102 Accounts Payable
103 Wages Payable
104 Interest Payable
105
106
107
108 Acct #
201 Common Stock
202 Dividends
203
204 301
302 Revenue Accounts
Acct #
Bakery Sales
Merchandise Sales
This 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. 401
402 Expense Accounts
Acct #
Baking Supplies Expense
Rent Expense
Insurance Expense
Misc. Expense
Business License Expense
Advertising Expense
Wages Expense
Telephone Expense
Interest Expense
Depreciation Expense
Misc. Supplies Expense 501
502
503
504
505
506
507
508
509
510
511 Peyton Approved
General Journal Entries
Jul-14
Date
Accounts
1-Jul Cash
Common Stock
Contributed cash for common stock
Baking Supplies
Accounts Payable
Purchased baking supplies on account
3-Jul cash
Notes payable
Received cash and issued 6% note
7-Jul Rent expense
Prepaid Rent
Cash
Paid rent in cash Debit
15,000.00 Credit
15,000.00 8,500.00
8,500.00 10,000.00
10,000.00 1,500.00
1,500.00
3,000.00 10-Jul Business License Expense
Cash
Paid cash for business license 375.00 11-Jul Misc Expense
Cash
Purchased cash register. 250.00 375.00 250.00 13-Jul Baking Equipment
5,000.00
Common Stock
5,000.00
Advertising Expense
200.00
Cash
200.00
Received equipment, issued stock and Paid cash for advertising
14-Jul Misc. Supplies
Cash
Paid cash for misc supplies.
30-Jul Telephone Expense
Accounts Payable
To record phone bill due in August
31-Jul Prepaid Insurance
Cash
To record insurance payment
31-Jul Salary Expense
Wages Payable
To record wages accrued
Accounts Receivable
Cash
Bakery Sales 300.00
300.00 45.00
45.00 1,200.00
1,200.00 120.00
120.00 5,000.00
10,000.00
15,000.00 Peyton Approved
General Journal Entries
Aug-14
Date
Accounts
5-Aug Salary Payable
Cash
To record salary paid. Debit
120.00 8-Aug Cash
Accounts Recevable
To record payments received. 3,200.00 10-Aug Accounts Payable
Cash
To record phone payment.
15-Aug Baking Supplies
Accounts Payable
Purchased baking supplies on account.
15-Aug Wages Expense
Wages Payable
To accrue salary Credit
120.00 3,200.00 45.00
45.00
5,000.00
5,000.00 480.00
480.00 15-Aug Rent Expense
1,500.00
Cash
To record rent payment.
18-Aug Cash
1,000.00
Accounts Receivable
To record payment receved from customers on accnt.
20-Aug Accounts Payable
Cash
To record purchase of baking supplies. 1,500.00 1,000.00 8,500.00
8,500.00 20-Aug Wages Payable
Cash
To record salary paid. 480.00 22-Aug Misc Supplies
Cash
To record purchase of misc supplies. 300.00 31-Aug Wages Expense
Wages Payable
To record accrued salary. 420.00 31-Aug Telephone Expense 480.00 300.00 420.00 45 Accounts Payable
31-Aug Cash Accounts Receivable
Bakery Sales 45
12,500
7500
$ 20,000.00 Peyton Approved
General Journal Entries
Sep-14
Date Accounts 1-Sep Dividends
Cash
Paid dividends.
5-Sep Wages Payable
Cash
To Record salary paid.
7-Sep Merchandise Inventory (10 x $6)
Cash
Purchased inventory.
8-Sep Cash
Accounts Receivable
Received payment from customers
10-Sep Accounts Payable
Cash
Paid phone bill for August. Debit Credit 3,000.00
3,000.00 420.00
420.00 60.00
60.00 4,000.00
4,000.00 45.00
45.00 11-Sep Baking supplies
Accounts Payable
Purchased baking supplies. 7,000.00 13-Sep Accounts Payable(vendor)
Cash
To record payment to vendor accnt. 5,000.00 15-Sep Wages Expense
Wages Payable 15-Sep Rent Expense
Cash
Paid rent.
15-Sep Cash (8 x $8.50) 7,000.00 5,000.00 456.00
456.00 1,500.00
1,500.00 68.00 Merchandise Sales Revenue 68.00 To record sale of inventory.
15-Sep Cost of Goods Sold (8 X $6) 48.00
48.00 Merchandise Inventory
Recorded the cost of goods sold 20-Sep Wages Payable
Cash 456.00 20-Sep Merchandise Inventory (20 x $6.10 )
Cash 122.00 24-Sep Cash (18 x 8.50)
Merchandise Sales Revenue
Record sale of inventory 153.00 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10)
Merchandise Inventory
Recorded the cost of goods sold 109.60 30-Sep Merchandise Inventory (25 x $6.05)
Cash 151.25 30-Sep Wages Expense
Wages Payable
To accrue salary 480.00 30-Sep Cash
Accounts Receivable
Bakery Sales 456.00 122.00 153.00 109.60 151.25 480.00 19,000.00
6,000.00
25,000.00 FIFO
Date
7-Sep Purchases
10 $
6.00 $ Sales
60.00 15-Sep
20-Sep 8 $
20 $ 6.10 $ 6.00 $
6.10 $
$ 12.00
97.60
109.60 12.00 6.00 $
6.10 $
$ 12.00
122.00
134.00 4 $ 6.10 $ 24.40 4 $
25 $
29
29 6.10 $
6.05 $
$
$ 24.40
151.25
175.65
175.65 LIFO
7-Sep Purchases
10 $
6.00 $ 333.25 6.10 $ 157.60 Ending Inventory
10 $
6.00 $
60.00 60.00
8 $ 20 $ $ Sales 15-Sep
20-Sep 26 6.00 $ 48.00 122.00 24-Sep 2 $
2 $
20 $
22 18 $ 6.10 $ 109.80 2 $
2 $
4 6.00 $
6.00 $
6.10 $
$
6.00 $
6.10 $
$ 15-Sep Cash (8 x $8.50)
Merchandise Sales Revenue
Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6)
Merchandise Inventory
Recorded the cost of goods sold 48.00 68.00 48.00 20-Sep Merchandise Inventory (20 x $6.10 )
Cash 122.00 24-Sep Cash (18 x 8.50)
Merchandise Sales Revenue
Record sale of inventory 153.00 109.60 151.25 7-Sep Merchandise Inventory (10 x $6)
Cash
Purchased inventory 60.00 122.00 153.00 109.60 151.25 60.00 12.00
12.00
122.00
134.00
12.00
12.20
24.20 15-Sep Cash (8 x $8.50)
Merchandise Sales Revenue
Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6)
Merchandise Inventory
Record inventory reduction due to sale 48.00 68.00 48.00 55 weighted average
7-Sep 6.05 $ $ Purchases
10 $
6.00 $ 151.25 333.25 6.10 $ 25 $
55 6.05 $
$ 6.00 $ 48.00 6.09 $ 109.62 151.25
333.25 2 $
2 $
20 $
22 18 $ 26 6.00 $
6.10 $
6.05 $
$
$ 12.00
12.20
151.25
175.45
175.45 Ending Inventory
10 $
6.00
$60 122.00 24-Sep
30-Sep 157.80 60.00
8 $ 20 $ $ Sales 15-Sep
20-Sep 26 2 $
2 $
25 $
29
29 157.62 4
4
25 $
29 6.00 $
6.00 $
6.10 $
$
$
$
6.05 $
$ 122.00 24-Sep Cash (18 x 8.50)
Merchandise Sales Revenue
Record sale of inventory 153.00 109.80 30-Sep Merchandise Inventory (25 x $6.05)
Cash 25 $ 20-Sep Merchandise Inventory (20 x $6.10)
Cash 24-Sep Cost of Goods Sold (18 x $6.10)
Merchandise Inventory
Record inventory reduction due to sale 30-Sep Cr
60.00 30-Sep Merchandise Inventory (25 x $6.05)
Cash $ 151.25 6.00 $ 7-Sep Merchandise Inventory (10 x $6)
Cash
Purchased inventory Dr
60.00 24-Sep Cost of Goods Sold (2 x $6)+(16 x $6.10)
Merchandise Inventory
Recorded the cost of goods sold 55 6.05 $ 48.00 2 $
2 $
20 $
22 2 $
16 $ 25 $ 6.00 $ 122.00 24-Sep 30-Sep Ending Inventory
10 $
6.00 $
60.00 151.25 7-Sep Merchandise Inventory (10 x $6)
Cash
Purchased inventory 60.00 122.00 153.00 109.80 151.25 60.00 12.00
12.00
122.00 per unit
134.00 $6.09
24.38
151.25
151.25 $5.22 15-Sep Cash (8 x $8.50)
Merchandise Sales Revenue
Record sale of inventory 68.00 15-Sep Cost of Goods Sold (8 X $6)
Merchandise Inventory
Record inventory reduction due to sale 48.00 68.00 48.00 20-Sep Merchandise Inventory (20 x $6.10)
Cash 122.00 24-Sep Cash (18 x 8.50)
Merchandise Sales Revenue 153.00 122.00 153.00 Purchases
9/7: 10 bottles purchased at $6
9/20: 20 bottles purchased at $6.10
9/30: 25 bottles purchased at $6.05
Sales ? selling price, $8.50 a bottle
9/15: 8 bottles
9/24: 18 bottles Record sale of inventory
24-Sep Cost of Goods Sold (18 x $6.09)
Merchandise Inventory
Record inventory reduction due to sale 109.62 30-Sep Merchandise Inventory (25 x $6.05)
Cash 151.25 109.62 151.25 Account
Cash
Baking Supplies
Merchandise Inventory
Prepaid Rent
Prepaid Insurance
Baking Equipment
Misc. Supplies
Accounts Receivable
Notes Payable
Accounts Payable
Wages Payable
Common Stock
Dividends
Bakery Sales
Merchandise Sales
Baking Supplies Expense
Rent Expense
Insurance Expense
Misc. Expense
Business License Expense
Advertising Expense
Wages Expense
Telephone Expense
COGS
Depreciation Expense
Accumulated Depreciation
Misc Supplies Expense*
Interest Expense*
Interest Payable* Peyton Approved
Trial Balance
2014
Unadjusted trial balance
Debit
Credit
47,896.75
20,500.00
175.65
1,500.00
1,200.00 Adjusting entries
Debit
Credit
19,400.00 200.00 5,000.00
600.00
10,300.00 550.00 Adjusted trial balance
Debit
Credit
###
1,100.00
###
###
1,000.00
###
50.00
### 10,000.00
7,000.00
480.00
20,000.00 ###
###
###
### 3,000.00 ###
60,000.00
221.00 ###
###
19,400.00
200.00 ###
###
### 208.33 ###
###
###
###
###
###
208.33 4,500.00
250.00
375.00
200.00
1,956.00
90.00
157.60
208.33
550.00
150.00 97,701.00 20,508.33 CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOUR
WORKBOOK TO COMPLETE THE 4-3 CHECKPOINT REQUIREMENT ###
###
50.00 150.00 97,701.00 COMPLETION OF STEPS 5-7 DELIVERABLE: 20,508.33 *These accounts will not be utilized before the adjusting process. They should have zero balance in the unadjusted trial balance. 50.00 97,959.33 97,959.33 date 3,000.00
375.00
250.00
200.00
300.00
1,200.00
120.00
45.00
1,500.00
8,500.00
480.00
300.00
3,000.00
420.00
60.00
45.00
5,000.00
1,500.00
456.00
122.00 date
7-Jul
10-Jul
11-Jul
13-Jul
14-Jul
31-Jul
5-Aug
10-Aug
15-Aug
20-Aug
20-Aug
22-Aug
1-Sep
5-Sep
7-Sep
10-Sep
13-Sep
15-Sep
20-Sep
20-Sep 151.25 1-Jul
3-Jul
31-Jul
8-Aug
18-Aug
31-Aug
8-Sep
15-Sep
24-Sep
30-Sep Cash
15,000.00
10,000.00
10,000
3,200.00
1,000.00
12,500.00
4,000.00
68.00
153.00
19,000.00 date Notes Payable
10,000 date
3-Jul Business License exp
10-Jul
375 30-Sep 10,000 31-Jul
31-Aug
30-Sep Accounts Rec.
5000
3200
7500
1000
6000
4000 Common Stock
15,000
5,000 375 8-Aug
18-Aug
8-Sep 30-Jul 1-Jul
13-Jul 20,000 Insurance expense
200 COMPLETION OF STEPS 1- 4 DELIVERABLE: CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOUR
WORKBOOK TO COMPLETE THE 3-3 CHECKPOINT REQUIREMENT
10300 74,921.00
47,896.75 11-Jul
30-Sep 200 27,024.25 Misc. expense
250
550 13-Jul Baking equipment
5,000 13-Jul Advertising expense
200 200
5,000
800 1-Jul
15-Aug
11-Sep Baking supplies
8,500
19400
5000 30-Sep 14-Jul
22-Aug Misc. supplies
300
550
300 30-Sep 7-Jul
15-Aug
15-Sep Rent expense
1,500
1500
1500 7000 20,500 600
4,500 Prepaid rent
1,500 7-Jul 31-Jul Prepaid insurance
1,200
200 Bakery Sales
30-Sep 15,000 31-Jul 20,000
25,000 31-Aug
30-Sep 1,000 60,000
(1,500) 10-Aug
10-Sep
13-Sep
20-Aug Accounts payable
45
8500
45
45
5,000
5,000
8,500
45
7,000 1-Jul
30-Jul
15-Aug
31-Aug
11-Sep Salary and wages expense
31-Jul
120
15-Aug
480
31-Aug
420
15-Sep
456
30-Sep
480 5-Aug
20-Aug
5-Sep
20-Sep Salaries and wages payable
120
120
480
480
420
420
456
456
480 31-Jul
15-Aug
31-Aug
15-Sep
30-Sep 7,000 30-Jul
31-Aug Telephone expense
45
45 1,956
480 1-Sep Dividends
3,000 depreciation expense acc dep 90
3,000 adj baking supplies expense
19,400 0
Interest expense
150 adj 19,400
misc supplies expense COGS LIF0 adj 15-Sep
24-Sep 0
Interest payable
150 adj 150
COGS FIFO
48.00
109.60 150 0
Merchandise Sales
Revenue
68.00
153.00 – 157.60 15-Sep
24-Sep 221.00
COGS Weighted Avg.
7-Sep
20-Sep
30-Sep – Merch. Inv. FIFO
60.00
48.00
122.00
109.60
151.25 175.65 Merch. Inv. LIFO Merch. Inv. Avg. 15-Sep
24-Sep – – Peyton Approved
Adjusting Journal Entries
2014
Date
Accounts
30-Sep Depreciation Expense
accumulated depreciation
30-Sep Interest Expense
Interest Payable
30-Sep Insurance Expense
Prepaid Insurance
30-Sep Baking Supplies Expense
Baking Supplies
30-Sep Misc. Expense
Misc. Supplies Debit
208.33 Credit
208.33 150.00
150.00 S
tep6:
Youwill usethe?
AdjustingEntries?tabinyourworkbooktocom
pletethefollowingentries. S
ee
sam
pleforDepreciationof B
akingEquipm
ent. Taketheadjustingentriesfromthisworksheet and
enterthemintothetrial balanceontheS
teps5and7Trial B
alancetab.
On September 30, the following adjustments must be made: 200.00
200.00
19,400.00
19,400.00
550.00
550.00 Depreciation of baking equipment transferred to companyon 7/13. Assume½month of
depreciation in Julyusing thestraight-linemethod.
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. Peyton Approved
Income Statement
For Qtr. Ending 9/30/2014
Revenues: Sales Expenses:
Baking Supplies Expense
Rent Expense
Insurance Expense
Misc Expense
Business License Expense
Advertising Expense
Wages Expense
Telephone Expense
Depreciation Expense
Misc Supplies Expense
Interest Expense
Cost of Goods Sold
Total Expenses:
Net Income $ 60,221.00 19,400.00
4,500.00
200.00
250.00
375.00
200.00
1,956.00
90.00
208.33
550.00
50.00
157.60
27,936.93
32,284.07 Peyton Approved
Statement of Retained Earnings
For Qtr. Ending 9/30/2014
Retained earnings, September 1 ,2014
Net income for the month 0
32,284.07 Dividends
Retained Earnings, September 30,2014 (3,000.00)
29,284.07 Peyton Approved
Balance Sheet
As of September 30, 2014
Assets
Cash
Accounts Recevable
Prepaid Rent
Baking Equipment
Misc, Supplies
Accumulated Depreciation
Prepaid Insurance
Baking Supplies
Merchandise Invetory
Total Assets Liabilities
47,896.75
10,300.00
1,500.00
5,000.00
50.00
208.33
1,000.00
1,100.00
175.65
67,230.73 Notes Payable
Accounts Payable
Wages Payable
Interest Payable 10,000.00
7,000.00
480.00
150.00 Stockholders' Equity
Common Stock 20,000.00 Retained Earnings 29,284.07 Total Liabilitiews and Stockholders' Equity 66,914.07 Peyton Approved
Closing Entries
9/30/2014
Date Accounts Debit Credit Peyton Approved
Post Closing Trial Balance
9/30/2014
Account Unadjusted Trial Balance
Debit
Credit Peyton Approved
Reversing Entries
9/30/2014
Date Accounts Debit Credit COMPLETION OF STEPS 8-11 DELIVERABLE: CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOUR
COMPLETED WORKBOOK (STEPS 1 – 11)TO COMPLETE THE 6-2 CHECKPOINT
REQUIREMENT