Step 1A:

Complete the following in the “July Journal Entries” tab in your 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 $8,500 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 $3,000 toward lease agreement for bakery space. The agreement is for one year. The rent is $1,500 per month; last month’s rent was required at time of lease agreement. Lease period is effective July 1, 2014 through June 30, 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 five-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 -- Receive telephone bill for July in amount of $45. Payment is due on August 10.

July 31 – Pay $1,200 for a 12-month insurance policy. Policy effective dates August 1, 2014 through July 31, 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. $5,000 of these sales on accounts receivable.

Step 1B:

Complete the following transactions in the August Journal Entries tab in your workbook.

August 5 – Pay employee for period ending July 31.

August 8 – Receive payments from customers towards accounts receivable in amount of $3,200.

August 10 – Pay July telephone bill.

August 15 – Purchase additional baking supplies in amount of $5,000 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, $1,500.

August 18 – Receive payments from customers towards accounts receivable in amount of $1,000.

August 20 – Pay $8,500 toward baking supplies vendor payable.

August 20 – Pay employee for period ending 8/15

August 22 – Purchase $300 in misc. supplies

August 31 – Receive telephone bill for August in amount of $45. Payment is due on September 10.

August 31 – Accrue wages earned for employee for period of August 16^th through August 31^st

                    (wage calculations table provided below).

August bakery sales total $20,000. $7,500 of this total on accounts receivable.

Complete the following transactions in the September Journal Entries tab in your workbook.

September 1 – Pay dividends to self in amount of $3,000.

September 5 – Pay employee for period ending August 31^st.

September 7 – Purchase merchandise for resale. See Inventory Valuation tab for details.

September 8 – Receive payments from customers toward accounts receivable in amount of

                         $4,000.

September 10 – Pay August telephone bill.

September 11 – Purchase baking supplies in amount of $7,000 from vendor on account.

September 13 – Pay on supplies vendor account in amount of $5,000.

September 15 – Accrue employee wages for period of September 1^st through September 15^th.

September 15 – Pay rent on bakery space, $1,500.

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 September 15^th.

September 20 – Purchase merchandise inventory for resale to customers.

                           See Inventory Valuation tab for details.

September 24 – Record sales of merchandise to customers.

                           See Inventory Valuation tab for details.

September 24 – Record impact of sales transaction on COGS and the inventory asset.

                           See inventory valuation tab for details.

September 30-Purchase merchandise inventory for resale to customers.

                           See Inventory Valuation tab for details.

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 accounts receivable.

 Step 3: 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 4:

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 30^th is $1,100.

·         Misc. supplies on-hand as of September 30th is $50.

Step 5:

Apply adjusting entries to the trial balance to create the adjusted trial balance.

Adjusting entries from Step 4 will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial balance.

Step 4:

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 3 and 5 Trial Balance tab. 

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. (6% annual interest on $10,000 loan from parents.)

·         Record insurance used for the year.

·         Actual baking supplies on-hand as of September 30^th is $1,100.

·         Misc. supplies on-hand as of September 30th is $50.

·         Step 6:

·         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 6:

·         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 7:

·         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 8:

·         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 9:

·         You will use the Reversing Entries tab in your workbook to do the following:

·         
Prepare reversing entries.

• 1501692377-acc201_accounting_cycle_workbook_15009454451.xlsx

SmartExpert

(118)

Status NEW Posted 02 Aug 2017 04:08 PM My Price 20.00

ACC----------- 20-----------1 F-----------ina-----------l P-----------roj-----------ect----------- An-----------swe-----------r F-----------ile-----------

Attachments

file 1501692294-ACC 201 Final Project Answer File.xls preview (424 words )

----------- ----------- As-----------set----------- Ac-----------cou-----------nts-----------Lia-----------bil-----------ity----------- Ac-----------cou-----------nts-----------Acc-----------t #-----------Acc-----------t #-----------Cas-----------h10-----------1No-----------tes----------- Pa-----------yab-----------le2-----------01B-----------aki-----------ng -----------Sup-----------pli-----------es1-----------02A-----------cco-----------unt-----------s P-----------aya-----------ble-----------202-----------Pre-----------pai-----------d R-----------ent-----------103-----------Wag-----------es -----------Pay-----------abl-----------e20-----------3Pr-----------epa-----------id -----------Ins-----------ura-----------nce-----------104-----------Int-----------ere-----------st -----------Pay-----------abl-----------e 2-----------04B-----------aki-----------ng -----------Equ-----------ipm-----------ent-----------105-----------Mis-----------c. -----------Sup-----------pli-----------es1-----------06A-----------cco-----------unt-----------s R-----------ece-----------iva-----------ble-----------107----------- ----------- A-----------ccu-----------mul-----------ate-----------d D-----------epr-----------eci-----------ati-----------on1-----------08T-----------his----------- ch-----------art----------- of----------- ac-----------cou-----------nts----------- sh-----------oul-----------d h-----------elp----------- yo-----------u i-----------den-----------tif-----------y t-----------he -----------app-----------rop-----------ria-----------te -----------acc-----------oun-----------ts -----------to -----------rec-----------ord----------- to----------- as----------- yo-----------u a-----------re -----------ana-----------lyz-----------ing----------- an-----------d j-----------our-----------nal-----------ing----------- tr-----------ans-----------act-----------ion-----------s f-----------or -----------thi-----------s w-----------ork-----------boo-----------k. -----------The-----------re -----------is

Not Rated(0)

• Buy Answer