Description
Overview
In previous modules, you examined the initial stages of the accounting cycle and practiced journalizing financial transactions. In Milestone One, you will complete the first part of your course project to demonstrate your ability to accurately record financial data, which will continue to be used to complete other parts of the project.
Scenario
You are a certified public accountant (CPA) who is working with a small bakery to prepare their financial statements for three months of the current fiscal year. Because the company is a startup and so small, the accounting is done manually in Microsoft Excel. You have been given the accounts and information you need to prepare their financial statements, but you will need to use the accounting cycle to report accurate information to the finance department.
Prompt
Record Financial Data: Use accepted accounting principles to accurately capture business transactions for October, November, and December in the Company Accounting Workbook Template using the data provided in the Accounting Data Appendix document.
Specifically, you must address the following rubric criteria:
- Accuracy: Prepare entries that are accurate in that they fully reflect the appropriate information.
- Completeness: Prepare entries that are complete for each month, including transferring posted entries to T accounts.
- Inventory Valuation: Prepare entries for the month of December to reflect the new line of products offered by the company, which includes using the entries from the “Inventory Valuation” tab to complete your journal for the month of December.
Guidelines for Submission
Using the provided template, submit your company accounting workbook with the following portions completed: October, November, and December journal entries; the “T Accounts” tab; and the “Inventory Valuation” tab. This should be completed and submitted using Microsoft Excel. Please note that there are drop-down menus embedded in the “Accounts” columns as well as formulas throughout the spreadsheet to help you complete the workbook without accidentally introducing errors.
Unformatted Attachment Preview
Purchase answer to see full attachment
Explanation & Answer
Attached. Please let me know if you have any questions or need revisions.
General Journal Entries
OCTOBER
Accounts
Debit
Cash
Common Stock
$10,000
Baking Supplies
Accounts Payable
$6,500
Cash
Notes Payable
$10,000
Rent Expense
Pre-paid Rent
Cash
$1,500
$1,500
Buisness License Expense
Cash
$375
Misc . Supplies
Cash
$250
Baking Equipment
Common Stock
$6,000
Advertising Expense
Cash
$200
Office Supplies
Cash
$300
Telephone Expense
Accounts Payable
Pre-paid Insurance
Cash
Wages Expense
Wages Payable
Cash
Accounts Recievable
$75
$2,400
$120
10,000.00
5,000.00
Bakery Sales
Total
54,220.00
108,440.00
Credit
$10,000
$6,500
$10,000
$3,000
$375
$250
$6,000
$200
$300
$75
$2,400
$120
15,000.00
54,220.00
108,440.00
Peyton Approved
General Journal Entries
Aug-18
Date
Accounts
Wages Payable
Cash
Cash
Accounts Recievable
Debit
120.00
3,800.00
Accounts Payable
Cash
$75
Baking Supplies
Accounts Payable
$5,000
Wages Expense
Wages Payable
$480
Cash
Accounts Receivable
3,000.00
Rent Expense
Cash
1,500.00
Cash
Accounts Receivable
3,000.00
Accounts Payable
Cash
8,500.00
Wages Payable
Cash
Misc. Supplies
Cash
Accounts Receivable
Telephone Expense
Wages Expense
Wages Payable
480.00
$300
$75
420.00
Accounts Receivable
Cash
Bakery Sales
7,500.00
12,500.00
Total
46,750.00
Credit
120.00
3,800.00
$75
$5,000
$480
3,000.00
1,500.00
3,000.00
8,500.00
480.00
300.00
75.00
420.00
20,000.00
$ 46,750.00
Peyton Approved
General Journal Entries
Sep-18
Date
Accounts
Dividends
cash
Wages Payable
Cash
Merchandise Inventory
Cash
Cash
Accounts Receivable
Debit
10,000.00
10,000.00
480.00
480.00
60.00
60.00
4,000.00
4,000.00
Accounts Payable
Cash
$75
Baking Supplies
Accounts Payable
$7,000
Accounts Payable
Cash
5,000.00
Wages Expense
Wages Payable
Rent Expense
Cash
Credit
$75
$7,000
5,000.00
$480
$480
1,500.00
1,500.00
Cash
Merchandise Sales
68.00
Cost of Goods sold
Merchandise Inventory
48.00
68.00
48.00
Wages Payable
Cash
456.00
Merchandise Inventory
Cash
122.00
456.00
122.00
Cash
Merchandise Sales
153.00
Cost of goods sold
Merchandise Inventory
109.60
Merchandise Inventory
Cash
151.25
Wages Expense
Wages Payable
480.00
Accounts Receivable
Cash
Bakery Sales
Total
153.00
109.60...