Accounting

Chart of

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Account

s

Acct # Acct #

Acct #

Acct #

																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																												Print this page to use for your journal entries. Only accounts on this page can be used.
Asset			Accounts	Liability Accounts	Equity Accounts
				Acct #
			Cash	101				Notes Payable	201				Common Stock	301
		Baking Supplies	102			Accounts Payable	202			Dividends	302
		Prepaid Rent	103			Wages Payable	203
		Prepaid Insurance	104				Interest Payable	204
		Baking Equipment	105
		Office Supplies	106
		Accounts Receivable	107
		Accumulated Depreciation	108
Merchandise Inventory	109	Revenue 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.
			Bakery Sales	401
			Merchandise Sales	402
Expense Accounts
	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
	Cost of Goods Sold	512

July Journal Entries

Accounts

– 0

– 0 – 0

Peyton Approved

General Journal Entries

Put entries in shaded cells

Jul-19

Date

Debit

Credit

Total

– 0

August Journal Entries

Peyton Approved
General Journal Entries Put entries in shaded cells

Date Accounts Debit Credit

Total – 0

Aug-19
			$ – 0

September Journal Entries

Peyton Approved
General Journal Entries Put entries in shaded cells

Date Accounts Debit Credit

Total – 0 – 0

Sep-19

Oct Journal entries

Peyton Approved
General Journal Entries Put entries in shaded cells

Date Accounts Debit Credit

Total – 0 $ – 0

Oct-19

Nov Journal entries

Peyton Approved
General Journal Entries Put entries in shaded cells

Date Accounts Debit Credit

Total – 0 $ – 0

Nov-19

Dec Journal entries

Peyton Approved
General Journal Entries Put entries in shaded cells

Date Accounts Debit Credit

Total – 0 $ – 0

Dec-19

T-Accounts

Cash date date Notes Payable date

Common Stock
– 0 – 0 – 0 – 0 – 0 – 0
– 0

Balance – 0

– 0 Balance
– 0 – 0
Balance – 0

– 0 – 0
Balance – 0

– 0 – 0 – 0 – 0 – 0 – 0
Balance – 0 Balance – 0 Balance – 0

– 0 – 0 – 0 – 0 – 0 – 0
Balance – 0 Balance – 0 Balance – 0

Bakery Sales

– 0 – 0 – 0 – 0 – 0 – 0

Balance – 0 Balance – 0 – 0 Balance

– 0 – 0 – 0 – 0 – 0 – 0

– 0 Balance Balance – 0 – 0 Balance
Dividends

– 0 – 0

Balance – 0
– 0 – 0

Balance – 0

– 0 – 0
Balance – 0
Merchandise Sales

– 0 – 0
– 0 Balance
– 0 – 0
Balance – 0

date

Business License exp

1-Jul

13-Jul

Balance

Accounts Rec.

Insurance expense

Misc. expense

Baking equipment

Advertising expense

Baking supplies

Office supplies

Rent expense

Prepaid rent

Prepaid insurance

Accounts payable

Wages expense

Wages payable

depreciation expense

Telephone expense

acc dep

Interest expense

baking supplies expense

COGS FIFO

Interest payable

misc supplies expense

Merch. Inv. FIFO

Trial Balance

Peyton Approved

Trial Balance
Account Debit Credit Debit Credit Debit Credit
Cash – 0 – 0
Baking Supplies – 0 – 0

– 0 – 0

Prepaid Rent – 0 – 0
Prepaid Insurance – 0 – 0
Baking Equipment – 0 – 0
Accumulated Depreciation – 0
Office Supplies – 0 – 0
Accounts Receivable – 0 – 0
Notes Payable – 0 – 0
Interest Payable – 0
Accounts Payable – 0 – 0
Wages Payable – 0 – 0
Common Stock – 0 – 0
Dividends – 0 – 0
Bakery Sales – 0 – 0
Merchandise Sales – 0 – 0
Baking Supplies Expense – 0
Rent Expense – 0 – 0
Interest Expense – 0
Insurance Expense – 0
Depreciation Expense – 0
Misc. Expense – 0 – 0
Office Supplies Expense – 0
Business License Expense – 0 – 0
Advertising Expense – 0 – 0
Wages Expense – 0 – 0
Telephone Expense – 0 – 0

– 0 – 0

Total – 0 – 0 – 0 – 0 – 0 – 0

	2019
Unadjusted trial balance	Adjusting entries	Adjusted trial balance
	Merchandise Inventory (FIFO)
COGS (FIFO)

Adjusting Entries

Peyton Approved

Put entries in shaded cells

2019

Date Accounts Debit Credit

– 0 – 0

Adjusting Journal Entries

Income Statement

Peyton Approved

Income Statement

– 0

Cost of Goods Sold

– 0

– 0

– 0

for December 31, 2019

Revenues:

Total Revenues

Gross Profit (FIFO)

Operating Expenses:

Total Operating Expenses:

Net Income (FIFO)

Statement of

Retained Earnings

Peyton Approved

Statement of Retained Earnings

– 0

– 0

For Qtr. Ending 9/30/2018

Beginning Balance:

plus Net Income (FIFO)

less Dividends:

Ending Balance (FIFO):

Balance Sheet

Peyton Approved

Balance Sheet

– 0

– 0

– 0

– 0

– 0

– 0

– 0

– 0

As of December 31, 2019
Assets	Liabilities and Owners’ Equity
Current Assets:	Current Liabilities:
Total Current Liabilities
Long-Term Liabilities:
Total Long-Term Liabilities:
Total Current Assets	Total Liabilities:
Long-Term/Fixed Assets:	Equity:
Less Accumulated Depreciation
Total Long-Term/Fixed Assets
Total Assets:	Total Equity
Total Liabilities & Equity

Closing Entries

Peyton Approved

Date Accounts Debit Credit

Bakery Sales

Merchandise Sales
30-Sep

30-Sep Income Summary (FIFO)

30-Sep Retained Earnings

Closing Entries
Year ending 12/31/2019
				30-Sep
Income Summary
	Income Summary (FIFO)
Baking Supplies Expense
Rent Expense
Wages Expense
Office Supplies Expense
Business License Expense
Misc. Expense
Depreciation Expense
Insurance Expense
Advertising Expense
	Interest Expense
Telephone Expense
COGS FIFO
	Retained Earnings FIFO
Dividends

Post Closing Trial Balance

Peyton Approved

Post Closing Trial Balance
Account Debit Credit
Cash
Baking Supplies
Merchandise Inventory (FIFO)
Prepaid Rent
Prepaid Insurance
Baking Equipment
Accumulated Depreciation
Office Supplies
Accounts Receivable
Accounts Payable
Wages Payable
Interest Payable
Notes Payable

Common Stock

Retained Earnings FIFO

– 0 – 0

12/31/19

Unadjusted Trial Balance

Totals

Reversing Entries

Peyton Approved

Date Accounts Debit Credit

30-Sep Interest Payable
Interest Expense

Reversing Entries

as of December 31, 2019

ACCT 151 – FALL 2020 PEYTON PROJECT INSTRUCTIONS AND DATA

Final Project Part I Peyton Approved Data

July 2019: (using the Excel workbook complete the following

1 – Open a bank account for Peyton Approved.

1 – You take $15,000 from your personal savings account and buy common stock in Peyton Approved.

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.

7 – Sign a lease agreement for retail/bakery space. The agreement is for 1 year, with the option to extend the lease on a month-to-month basis after 1 year. The rent is $1,500 per month. The lease period starts on July 1, 2019, first and last month’s rent due at that time. Subsequent rents are due on the 15th day of each month. (no entry- record this transaction on July 15th, see below)

10 – Pay $375 to the county for a business license.

11 – Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipment—use misc. exp.).

13 – You have baking equipment, including an oven and mixer, that 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.

13 – Pay $200 for business cards/flyers/posters/ads to use for advertising.

14 – Pay $1,000 for baking ingredients (use baking supplies account).

14 – Pay $300 for miscellaneous (use misc. supplies).

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.

15 – Pay first and last month’s rent in cash. (1,500 January rent; January 2020 rent 1,500)

16 – Open the doors of the bakery.

31 – Pay $1,200 for a 12-month insurance policy beginning February 1, 2019

31- Record sales $5,000; $2,500 paid in cash remainder paid later

31- Received telephone bill, $45, will pay on 8/5 accrue invoice

The following events occur during the next 6 months:

August

· August 5 – pay accrued telephone bill

· August 8 – purchase Baking Supplies on credit $8,500

· August 15 – accrue Salary 40 hours @ 12.00/per hour – will be paid on 8/20

· August 15 – customer paid $2,500 invoice from previous month

· August 15 – Pay in cash August Rent $1,500

· August 20 – Pay employees for August 1-15 accrued on 8/15

· August 25 – purchase for cash $300 miscellaneous supplies

· August 31st – record August sales $20,000 paid to Peyton in cash

· August 20th – Record payment to employee

· August 31st – Accrue Salary 40 hours @ 12/per hour – will be paid 9/5

· August 31st – Record telephone bill for $45, to be paid on 9/10

September 2019

· September 5 – Record payment to employee wages accrued on 8/31

· September 10 – Record payment of telephone bill accrued 8/31

· September 10th – Record purchase of baking supplies on credit, $9,000

· September 15th – Record rent payment

· September 15th- Accrue w.e. 9/15 wages 38 hours @ 12.00/per hour

· September 15th – Record payment of baking supplies purchased on 8/8

· September 19th – Record cash paid for miscellaneous supplies $325

· September 20th – Record payment of employee wages accrued on 9/15

· September 30th – Record telephone bill received $45, not paid until 10/5

· September 30th – Record sales $27,000 from customers paid to Peyton in cash

· September 30th – Accrue w.e. 9/30 wages 40 hours @ 12/hr (pay to employees 10/5)

October 2019

· October 5th – Pay telephone bill accrued 9/30

· October 10th – Pay employees wages accrued 9/30

· October 12th – Purchase on credit $10,000 baking supplies

· October 11th- Record payment of baking supplies purchased on 9/10

· October 14th – Record purchase of miscellaneous supplies $310 for cash

· October 15th – Accrue wages for w.e. 10/15

· October 15th – Pay in cash rent for October

· October 20th – Pay employee wages accrued on 10/15

· October 30th – Record bakery sales paid to Peyton in cash, $27,000

· October 30th – Accrue wages 40 hours @ 12.00/hr

· October 30th – Record receipt of telephone bill, $45, not paid until 11/5

· October 30th – Record dividend payment $4,500

November 2019

· November 5th – Pay telephone bill accrue 10/30

· November 10th – Pay employee wages accrued on 10/30

· November 10th – Pay baking supplies purchased on credit 10/12

· November 10th – Purchase baking supplies on credit $10,000 due next month

· November 15th – Accrue wages for week ended 11/15 @ 35 hours 12.00/per hour

· November 15th – Purchase for cash $300 miscellaneous supplies

· November 15th – Paid November rent, $1,500 in cash

· November 15th – Purchase 10 bottles (merchandise inventory) @ 6.00 each

· November 20th – Sold 8 bottles $8.50 (record transaction assuming FIFO) for cash

· November 20th – Purchase 20 bottles @ 6.05 each for cash

· November 20th – Pay employees accrued on 11/15

· November 30th – Sold 18 bottles @ $8.50 each for cash

· November 30th – Record telephone bill $45, paid 12/5

· November 30th – Accrue wages w.e. 11/30 30 hours @ 12.00/hour

· November 30th – Record November sales $25,000 received by Peyton in cash

· November 30th – Pay owner dividends in cash $2.500

December 2019

· December 1st – Purchased 25 bottles @ $6.05 each for cash

· December 4th – Purchase on credit $12,000 baking supplies

· December 5th – Pay employees accrue wages 11/30

· December 10th – Pay telephone bill accrued on 11/30

· December 10th – Record payment of baking supplies purchased on 11/10

· December 15th – Accrue employee wages 45 hours (straight time) @12.00/hour

· December 15th – Pay monthly rent in cash

· December 15th – purchase miscellaneous supplies for cash $300

· December 15th – Purchase for cash 30 bottles @ 6.00 each

· December 15th – Sold 22 bottles @ $8.50 for cash ( use FIFO for inventory)

· December 20th – Purchase for cash 20 bottles @ $6.08 each

· December 20th – Pay employee wages accrued 12/15

· December 30th – Sold 22 bottles @ 8$8.50 each (use FIFO)

· December 30th – Record telephone bill $45 (due and paid next month)

· December 30th – Record December bakery sales paid to Peyton in cash, $30,000

· December 31st – Accrue employee wages for w.e. 12/31 @ 40 hours /12.00 hour

· December 31st – Pay in cash $2,500 dividends to owner10/31

On December 31, the following adjustments must be made: (use the adjusting entry tab to record transactions – then transfer the entries to the trial balance adjusting entries column)

a) Depreciation of baking equipment transferred to company on 7/13. Assume ½ month of depreciation in July using the straight-line method.

b) Accrue interest for note payable (Assume a full month of interest for July).

c) Record insurance used for the year.

d) An inventory of baking supplies shows $1,100 of supplies are remaining.

e) An inventory of misc. supplies shows $50 remaining.

Once the entries are recorded, using the specific tabs, complete the following tasks:

1. Complete the T-accounts (transfer the transactions to the appropriate accounts

2. Record the closing entries

3. Prepare the trial balance (unadjusted)

4. Complete the trial balance, with adjusting entries and the adjusted

5. Prepare the Income Statement

6. Prepare the Statement of Owner’s equity

7. Prepare the Balance Sheet

Part 2: Written Report – Accounting Cycle Report (2-3 pages double spaced 12/ft times roman – Submit in the appropriate dropbox folder

Draft a paper answering the following questions)

· Provide an overview of the company’s accounting system. What basis of accounting is used? Why?

· What strategies is the business using to ensure responsible accounting practices? Why have these strategies been selected?

· Describe the steps in the accounting cycle.

· Define internal controls and discuss 1-2 controls and how they are relevant to the Peyton company

· Analyze the results of operations based on the financial statements. What do these results tell a business? e) What do the statements themselves tell about the strengths and weaknesses of the company’s financial position?

· Discuss the changes in operations that might need to be made to make the company more profitable. Justify why each change may be necessary.

· What are the company’s financial strengths and weaknesses? What specific changes can be made to alleviate the weaknesses?

· What opportunities can the company explore because of its strengths? How would these be beneficial?