Fluent Essays

Please help me with these financial statements. I have also included a check figures document Chart of Accounts 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. Asset Accounts Liability Accounts Equity Accounts Acct # Acct # Acct # Cash 101 Notes Payable 201 Common Stock 301 Baking Supplies 102 Accounts Payable 202 Dividends 302 Prepaid Rent 103 Wages Payable 203 Cost of Goods Sold 303 Prepaid Insurance 104 Interest Payable 204 Baking Equipment 105 Office Supplies 106 Accounts Receivable 107 Accumulated Depreciation 108 Merchandise Inventory 109 Revenue Accounts Acct # Bakery Sales 401 Merchandise Sales 402 Expense Accounts Acct # Baking Supplies Expense 501 Rent Expense 502 Insurance Expense 503 Misc. Expense 504 Business License Expense 505 Advertising Expense 506 Wages Expense 507 Telephone Expense 508 Interest Expense 509 Depreciation Expense 510 Office Supplies Expense 511 Cash Baking Supplies Prepaid Rent Prepaid Insurance Baking Equipment Office Supplies Accounts Receivable Accumulated Depreciation Merchandise Inventory Notes Payable Accounts Payable Wages Payable Interest 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 Interest Expense Depreciation Expense Office Supplies Expense Cost of Goods Sold October Journal Entries A Company General Journal Entries October, 20xx Date Accounts Debit Credit 1-Oct Cash $25,000 Common Stock $25,000 1-Oct Baking Supplies 8,500.00 Accounts Payable 8,500.00 3-Oct Cash 10,000.00 Notes Payable 10,000.00 7-Oct Rent Expense 1,500.00 Prepaid Rent 1,500.00 Cash 3,000.00 10-Oct Business License Expense 375.00 Cash 375.00 11-Oct Misc. Expense 250.00 Cash 250.00 13-Oct Baking Equipment 5,000.00 Common Stock 5,000.00 13-Oct Advertising Expense 200.00 Cash 200.00 14-Oct Office Supplies 300.00 cash 300.00 30-Oct Telephone Expense 75.00 Accounts Payable 75.00 31-Oct Prepaid Insurance 1,200.00 Cash 1,200.00 31-Oct Wages Payable 120.00 Cash 120.00 31-Oct Cash 10,000.00 Accounts Receivable 5,000.00 Bakery Sales 15,000.00 Total 69,020.00 69,020.00 <== Do the debits equal the credits? (they should) November Journal Entries A Company General Journal Entries November, 20xx Date Accounts Debit Credit 5-Nov Wages Payable 120.00 Cash 120.00 8-Nov Cash 3,800.00 Accounts Receivable 3,800.00 10-Nov Accounts Payable 75.00 Cash 75.00 15-Nov Baking Supplies 5,000.00 Accounts Payable 5,000.00 15-Nov Wages Expense 480.00 Wages Payable 480.00 15-Nov Rent Expense 1,500.00 Cash 1,500.00 18-Nov Cash 1,000.00 Accounts Receivable 1,000.00 20-Nov Accounts Payable 8,500.00 Cash 8,500.00 20-Nov Wages Payable 480.00 Cash 480.00 22-Nov Office Supplies 300.00 Cash 300.00 30-Nov Telephone Expense 75.00 Accounts Payable 75.00 30-Nov Wages Expense 420.00 Wages Payable 420.00 30-Nov Cash 12,500.00 Accounts Receivable 7,500.00 Bakery Sales 20,000.00 Total 41,750.00 41,750.00 <== Do the debits equal the credits? (they should) December Journal Entries A Company General Journal Entries December, 20xx Date Accounts Debit Credit 1-Dec Dividends 10,000.00 Cash 10,000.00 5-Dec Wages Payable 420.00 Cash 420.00 7-Dec Merchandise Inventory 60.00 Be sure to review the Inventory Valuation tab (Columns M-P) for all Inventory related journal entries as they are given to you! Cash 60.00 8-Dec Cash 4,000.00 Accounts Receivable 4,000.00 10-Dec Accounts Payable 75.00 Cash 75.00 11-Dec Baking Supplies 7,000.00 Accounts Payable 7,000.00 13-Dec Accounts Payable 5,000.00 Cash 5,000.00 15-Dec Wages Expense 456.00 Wages Payable 456.00 15-Dec Rent Expense 1,500.00 Cash 1,500.00 15-Dec Cash 68.00 Merchandise Sales 68.00 15-Dec Cost of Goods Sold 48.00 Merchandise Inventory 48.00 20-Dec Wages Payable 456.00 Cash 456.00 20-Dec Merchandise Inventory 122.00 Cash 122.00 24-Dec Cash 153.00 Merchandise Sales 153.00 24-Dec Cost of Goods Sold 109.60 Merchandise Inventory 109.60 30-Dec Merchandise Inventory 151.25 Cash 151.25 31-Dec Wages Expense 480.00 Wages Payable 480.00 31-Dec Cash 19,000.00 Accounts Receivable 6,000.00 Bakery Sales 25,000.00 Total 55,098.85 55,098.85 <== Do the debits equal the credits? (they should) Inventory Valuation FIFO Purchases Sales Ending Inventory Purchases Date No. of Items Unit Price Total Price No. of Items Unit Price Total Price No. of Items Unit Price Total Price Date Microsoft: Below are the journal entries for each inventory related transaction! All you need to do is copy and paste it into the correct dates on the December Journal tab! Dr Cr 12/7: 10 boxes purchased at $6 7-Dec 10 $ 6.00 $ 60.00 10 $ 6.00 $ 60.00 7-Dec Merchandise Inventory (10 x $6) 60.00 12/20: 20 boxes purchased at $6.10 Cash 60.00 12/30: 25 boxes purchased at $6.05 15-Dec 8 $ 6.00 $ 48.00 2 $ 6.00 $ 12.00 Purchased inventory Sales – selling price, $8.50 a box 12/15: 8 boxes 20-Dec 20 $ 6.10 $ 122.00 2 $ 6.00 $ 12.00 15-Dec Cash (8 x $8.50) 68.00 12/24: 18 boxes 20 $ 6.10 $ 122.00 Merchandise Sales Revenue 68.00 22 $ 134.00 Record sale of inventory 24-Dec 2 $ 6.00 $ 12.00 15-Dec Cost of Goods Sold (8 X $6) 48.00 16 $ 6.10 $ 97.60 4 $ 6.10 $ 24.40 Merchandise Inventory 48.00 18 $ 109.60 Recorded the cost of goods sold 30-Dec 25 $ 6.05 $ 151.25 4 $ 6.10 $ 24.40 20-Dec Merchandise Inventory (20 x $6.10 ) 122.00 25 $ 6.05 $ 151.25 Cash 122.00 29 $ 175.65 Net Inventory 55 $ 333.25 26 $ 157.60 29 $ 175.65 24-Dec Cash (18 x 8.50) 153.00 Merchandise Sales Revenue 153.00 Record sale of inventory 24-Dec Cost of Goods Sold (2 x $6)+(16 x $6.10) 109.60 Merchandise Inventory 109.60 Recorded the cost of goods sold 30-Dec Merchandise Inventory (25 x $6.05) 151.25 Cash 151.25 T-Accounts - autofill date Cash date date Notes Payable date Business License exp Common Stock 1-Oct $ 25,000.00 $ 10,000.00 3-Oct 10-Oct $ 375.00 $ 25,000.00 1-Oct 3-Oct $ 10,000.00 $ 5,000.00 13-Oct $ 3,000.00 7-Oct $ - 0 $ 10,000.00 $ 375.00 $ - 0 $ - 0 $ 30,000.00 $ 375.00 10-Oct $ 10,000.00 $ 375.00 $ 30,000.00 $ 250.00 11-Oct $ 200.00 13-Oct $ 300.00 14-Oct $ 1,200.00 31-Oct 31-Oct $ 10,000.00 $ 120.00 5-Nov 8-Nov $ 3,800.00 $ 75.00 10-Nov 18-Nov $ 1,000.00 $ 1,500.00 15-Nov $ 8,500.00 20-Nov Accounts Rec. $ 480.00 20-Nov 31-Oct 5,000.00 $ 300.00 22-Nov 3,800.00 8-Nov 30-Nov $ 12,500.00 1,000.00 18-Nov $ 10,000.00 1-Dec 30-Nov 7,500.00 $ 420.00 5-Dec 4,000.00 8-Dec $ 60.00 7-Dec 31-Dec 6,000.00 8-Dec $ 4,000.00 $ 75.00 10-Dec $ 18,500.00 $ 8,800.00 $ 5,000.00 13-Dec $ 9,700.00 $ 1,500.00 15-Dec 15-Dec $ 68.00 $ 456.00 20-Dec $ 122.00 20-Dec 24-Dec $ 153.00 $ 151.25 30-Dec 31-Dec $ 19,000.00 $ 85,521.00 $ 34,084.25 $ 51,436.75 Misc. expense Baking equipment Advertising expense 11-Oct $ 250.00 13-Oct $ 5,000.00 13-Oct $ 200.00 $ 250.00 $ - 0 $ 5,000.00 $ - 0 $ 200.00 $ - 0 $ 250.00 $ 5,000.00 $ 200.00 Baking supplies Office supplies Rent expense 1-Oct $ 8,500.00 14-Oct $ 300.00 7-Oct $ 1,500.00 15-Nov $ 5,000.00 22-Nov $ 300.00 15-Nov $ 1,500.00 11-Dec $ 7,000.00 15-Dec $ 1,500.00 $ 20,500.00 $ - 0 $ 600.00 $ - 0 $ 4,500.00 $ - 0 $ 20,500.00 $ 600.00 $ 4,500.00 Prepaid rent Prepaid insurance Bakery Sales 7-Oct $ 1,500.00 31-Oct $ 1,200.00 $ 15,000.00 31-Oct $ 20,000.00 30-Nov $ 25,000.00 31-Dec $ 1,500.00 $ - 0 $ 1,200.00 $ - 0 $ - 0 $ 60,000.00 $ 1,500.00 $ 1,200.00 $ 60,000.00 Accounts payable Salary and wages expense Salaries and wages payable $ 8,500.00 1-Oct 31-Oct $ 120.00 $ 120.00 31-Oct $ 75.00 31-Oct 15-Nov $ 480.00 5-Nov $ 120.00 10-Nov $ 75.00 30-Nov $ 420.00 $ 480.00 15-Nov $ 5,000.00 15-Nov 15-Dec $ 456.00 20-Nov $ 480.00 20-Nov $ 8,500.00 31-Dec $ 480.00 $ 420.00 30-Nov $ 75.00 30-Nov 5-Dec $ 420.00 10-Dec $ 75.00 $ 1,956.00 $ - 0 $ 456.00 15-Dec $ 7,000.00 11-Dec $ 1,956.00 20-Dec $ 456.00 13-Dec $ 5,000.00 $ 480.00 31-Dec $ 13,650.00 $ 20,650.00 $ 7,000.00 $ 1,476.00 $ 1,956.00 $ 480.00 Telephone expense Dividends COGS 30-Oct $ 75.00 1-Dec $ 10,000.00 15-Dec $ 48.00 30-Nov $ 75.00 $ 10,000.00 $ - 0 24-Dec $ 109.60 $ 150.00 $ - 0 $ 10,000.00 $ 157.60 $ - 0 $ 150.00 $ 157.60 Merchandise Sales Revenue Merch. Inv. FIFO $ 68.00 15-Dec 7-Dec $ 60.00 $ 153.00 24-Dec $ 48.00 15-Dec 20-Dec $ 122.00 $ - 0 $ 221.00 $ 109.60 24-Dec $ 221.00 30-Dec $ 151.25 $ 333.25 $ 157.60 $ 175.65 Adjusting Entries A Company Adjusting Journal Entries 20XX Date Accounts Debit Credit 31-Dec Depreciation Expense 1,000.00 Accumulated Depreciation 1,000.00 Interest Expense 600.00 <== Interest adjustment goes here Interest Payable 600.00 <== Interest adjustment goes here 200.00 <== Insurance adjustment goes here 200.00 <== Insurance adjustment goes here Baking Supplies 1,500.00 <== Baking supplies adjustment goes here 1,500.00 <== Baking supplies adjustment goes here 300.00 <== Office supplies adjustment goes here 300.00 <== Office supplies adjustment goes here 3,600.00 3,600.00 <== Do the debits equal the credits? (they should) Trial Balance A Company Trial Balance 20xx Unadjusted trial balance Adjusting entries Adjusted trial balance Account Debit Credit Debit Credit Debit Credit Cash 51,436.75 51,436.75 Baking Supplies 20,500.00 1,100.00 1,500.00 21,600.00 1,500.00 Merchandise Inventory 175.65 175.65 Prepaid Rent 1,500.00 1,500.00 Prepaid Insurance 1,200.00 200.00 1,200.00 200.00 Baking Equipment 5,000.00 5,000.00 Accumulated Depreciation 1,000.00 1,000.00 Office Supplies 600.00 300.00 600.00 300.00 Accounts Receivable 9,700.00 9,700.00 Notes Payable 10,000.00 10,000.00 Interest Payable 600.00 600.00 Accounts Payable 7,000.00 7,000.00 Wages Payable 480.00 480.00 Common Stock 30,000.00 30,000.00 Dividends 10,000.00 10,000.00 Bakery Sales 60,000.00 60,000.00 Merchandise Sales 221.00 221.00 Baking Supplies Expense 1,500.00 1,500.00 Rent Expense 4,500.00 4,500.00 Interest Expense Insurance Expense 200.00 200.00 200.00 200.00 Depreciation Expense 1,000.00 1,000.00 Misc. Expense 250.00 250.00 Office Supplies Expense - 0 - 0 - 0 Business License Expense 375.00 375.00 Advertising Expense 200.00 200.00 Wages Expense 1,956.00 1,956.00 Telephone Expense 150.00 150.00 COGS 157.60 157.60 Retained Earnings Total: 107,701.00 107,701.00 3,800.00 3,800.00 111,501.00 111,501.00 Do these two columns tie to the debits and credits on the adjusting entries tab? Debits should equal credits Debits should equal credits Debits should equal credits ` Income Statement A Company Income Statement For Qtr. Ending 12/31/20XX Revenues Total Revenues - 0 <== Dont forget the COGS! Gross Profit - 0 Operating Expenses: Baking Supplies Expense 1,500.00 Total Operating Expenses: 1,500.00 Net Income (1,500.00) Statement of Stockholder Equity A Company Statement of Stockholders Equity For Qtr. Ending 12/31/20xx Common Stock Retained Earnings Total Beginning Balances, September 30 0 0 0 Issued Common Stock Net Income Dividends Make sure your dividends are negative so the formula subtracts them Ending Balances, December 31: - 0 - 0 - 0 Balance Sheet A Company Balance Sheet As of December 31, 20XX Assets Liabilities and Owners Equity Current Assets: Current Liabilities: Total Current Liabilities - 0 Long Term Liabilities: Total Current Assets - 0 Total Long Term Liabilities: - 0 Total Liabilities: - 0 Shareholders Equity: Non-Current Assets: Microsoft: show number as negative as the total formula will subtract it for you. Total Equity - 0 Baking Equipment (Net) - 0 Total Assets: - 0 Total Liabilities & Equity - 0 <== Do the debits equal the credits? (they should) Closing Entries A Company Closing Entries Qtr ending 12/31/20xx Date Accounts Debit Credit Note** We are closing out the same accounts that are listed on the income statement 31-Dec Bakery Sales Merchandise Sales Retained Earnings 31-Dec Retained Earnings Baking Supplies Expense Rent Expense Wages Expense Misc Expense Business License Expense Office Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense COGS 31-Dec Retained Earnings Dividends Post-Closing Trial Balance A Company Post-Closing Trial Balance Qtr. Ending 12/31/20xx Unadjusted Trial Balance Account Debit Credit Cash Note** These are the same accounts that are listed on the balance sheet Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation <== Accumulated depreciation goes in the debit column - as a reduction of the assets (so be sure it is a negative number!) just as you have on the balance sheet. Office Supplies Accounts Receivable Accounts Payable Wages Payable Interest Payable Notes Payable Common Stock Retained Earnings Total - 0 - 0 <== Do the debits equal the credits? (they should) Good morning! I wanted to give you some check figures that you can use for your final project financial statements. This way you will know if you are on the right track or not. Income Statement: Cost of Goods sold comes from the Inventory Valuation sheet (sales column total). Gross Profit: $60,063.40 Net Income: $32,124.07 Statement of Retained Earnings: There is no beginning balance Ending Balance: $52,124.07 Balance Sheet: Current Assets: $64,962.40 Long Term Assets: $4,791.67 Current Liabilities: $7,630.00 Long term Liabilities: $10,000 Total Equity: $52,124.07 Closing Entries: Your debits and credits should each equal $98,317.93 Post Close Trial Balance Your debits and credits should each equal $69,754.07 Accounting Data Appendix 1. The following events occurred in October: October 1: The business owner used $25,000 from their personal savings account to buy common stock in their company. October 1: Purchased $8,500 worth of baking supplies from vendor, on account. October 3: The company borrowed $10,000 in cash, in exchange for a two-year, 6\% note payable. Interest and the principal are repayable at maturity. October 7: Entered into a lease agreement for bakery space. The agreement is for one year. The rent is $1,500 per month; the last month’s rent payment of $1,500 is required at the time of the lease agreement. The payment was made in cash. Lease period is effective October 1 of this year through September 30 of the next. October 10: Paid $375 to the county for a business license. October 11: Purchased a cash register for $250 (deemed to be not material enough to qualify as depreciable equipment). October 13: The owner has baking equipment, including an oven and mixer, which they have been using for their 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. October 13: Paid $200 for business cards and flyers to use for advertising. October 14: Paid $300 for office supplies. October 15: Hired a part-time helper to be paid $12 per hour. One pay period is the first of the month through the fifteenth, and the other is the sixteenth through the end of the month. Paydays are the twentieth for the first pay period and the fifth of the following month for the second pay period. (No entry required on this date—for informational purposes only.) October 30: Received telephone bill for October in amount of $75. Payment is due on November 10. October 31: Paid $1,200 for a 12-month policy. Policy effective dates are November 1 through October 31. October 31: Accrued wages earned for employee for period of October 16 through October 31. (See Wage Calculation Data table at the end of this document.) October 31: Total October bakery sales were $15,000 ($5,000 of these sales on accounts receivable). 2. The following events occurred in November: November 5: Paid employee for period ending October 31. November 8: Received payments from customers toward accounts receivable in amount of $3,800. November 10: Paid October telephone bill. November 15: Purchased additional baking supplies in amount of $5,000 from vendor, on account. November 15: Accrued wages earned for employee from period of November 1 through November 15. (See Wage Calculation Data table at the end of this document.) November 15: Paid rent on bakery space. November 18: Received payments from customers toward accounts receivable in amount of $1,000. November 20: Paid $8,500 toward baking supplies vendor payable. November 20: Paid employee for period ending November 15. November 22: Purchased $300 in office supplies. November 30: Received telephone bill for November in amount of $75. Payment is due on December 10. November 30: Accrued wages earned for employee for period of November 16 through November 30. (See Wage Calculation Data table at the end of this document.) November 30: November bakery sales total was $20,000 ($7,500 of this total on accounts receivable). 3. Many customers have been asking for more allergy-friendly products, so in December the bakery started carrying a line of gluten-free products on a trial basis. The information below relates to the purchase and sales of the new products. Use the perpetual inventory method with the FIFO valuation method. Please see the “Inventory Valuation” tab in your workbook for purchase and sales information. The following events occurred in December: December 1: Paid dividends to self in amount of $10,000. December 5: Paid employee for period ending November 30. December 7: Purchased merchandise for resale. See the “Inventory Valuation” tab for details. December 8: Received payments from customers toward accounts receivable in amount of $4,000. December 10: Paid November telephone bill. December 11: Purchased baking supplies in amount of $7,000 from vendor on account. December 13: Paid on supplies vendor account in amount of $5,000. December 15: Accrued employee wages for period of December 1 through December 15. December 15: Paid rent on bakery space $1,500. December 15: Recorded merchandise sales transaction. See the “Inventory Valuation” tab for details. December 15: Recorded impact of sales transaction on COGS and the inventory asset. See the “Inventory Valuation” tab for details. December 20: Paid employee for period ending December 15. December 20: Purchased merchandise inventory for resale to customers. See the “Inventory Valuation” tab for details. December 24: Recorded sales of merchandise to customers. See the “Inventory Valuation” tab for details. December 24: Recorded impact of sales transaction on COGS and the inventory asset. See the “Inventory Valuation” tab for details. December 30: Purchased merchandise inventory for resale to customers. See the “Inventory Valuation” tab for details. December 31: Accrued employee wages for period of December 16 through December 31. December 31: Total December bakery sales were $25,000 ($6,000 of these sales on accounts receivable). 4. On December 31, the following adjustments must be made: · Depreciation of baking equipment transferred to company on October 13. Assume half month of depreciation in October using the straight-line method. Assume no salvage value. · Accrue interest for note payable. Assume a full month of interest for October. (6\% annual interest on $10,000 loan) · Record insurance used for the year. · Actual baking supplies on hand as of December 31 are $1,100. · Office supplies on hand as of December 31 are $50. Wage Calculation Data Month Hours Rate Pay 31-Oct 10 12 120 15-Nov 40 12 480 30-Nov 35 12 420 15-Dec 38 12 456 31-Dec 40 12 480