ACCT 307 Southern New Hampshire University Milestone One Financial Statement Production Discussion

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Business Finance

ACC 307

Southern New Hampshire University

ACC

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In your initial post, consider the steps in the accounting cycle. In what order do you think the financial statements should be produced? Specifically, does the position of the closing entries make sense to you as described in the textbook, or does it make more sense to produce the statements in the order described in Milestone One, in which the closing entries are completed after the income statement? Why or why not?

Then, in your follow-up posts, discuss your experiences working on Milestone One of the final project. Has the reading and homework prepared you for this work? What have been the challenges so far?

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Asset Accounts Acct # Cash Baking Supplies Prepaid Rent Prepaid Insurance Baking Equipment Office Supplies Accounts Receivable Accumulated Depreciation Trademark Leasehold Improvements Accumulated Amortization 101 102 103 104 105 106 107 108 109 110 111 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. Liability Accounts Acct # Notes Payable Accounts Payable Wages Payable Interest Payable Loans Payable e appropriate accounts to record to as you are analyzing and nothing to complete on this page; this is simply a resource for you. 201 202 203 204 205 Equity Accounts Acct # Common Stock Dividends 301 302 Revenue Accounts Acct # Bakery Sales Merchandise Sales 401 402 Expense Accounts Acct # Baking Cost of Goods Sold Merchandise Cost of Goods Sold Rent Expense Insurance Expense Misc. Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Interest Expense Depreciation Expense Amortization Expense Office Supplies Expense 501 502 503 504 505 506 507 508 509 510 511 512 513 Account Cash Baking Supplies Merchandise Inventory (FIFO) Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Leasehold Improvements Accumulated Amortization Trademark Office Supplies Accounts Receivable Notes Payable Interest Payable Accounts Payable Wages Payable Loans Payable Common Stock Dividends Bakery Sales Merchandise Sales Baking Cost of Goods Sold Rent Expense Interest Expense Insurance Expense Depreciation Expense Amortization Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Merchandise COGS (FIFO) Total: (FIFO) Peyton Approved Trial Balance 2017 Unadjusted trial balance Debit Credit 55,428.00 165,250.00 25,750.00 7,500.00 2,400.00 26,000.00 3,000.00 10,000.00 2,000.00 2,300.00 1,600.00 30,401.00 10,000.00 27,325.00 21,000.00 30,000.00 20,000.00 335,675.00 35,200.00 90,000.00 2,780.00 375.00 5,200.00 3,456.00 15,760.00 464,200.00 464,200.00 Approved Balance 017 Adjusting entries Debit Credit - - Adjusted trial balance Debit Credit 55,428.00 165,250.00 25,750.00 7,500.00 2,400.00 26,000.00 3,000.00 10,000.00 2,000.00 2,300.00 1,600.00 30,401.00 10,000.00 27,325.00 21,000.00 30,000.00 20,000.00 335,675.00 35,200.00 90,000.00 2,780.00 375.00 5,200.00 3,456.00 15,760.00 464,200.00 464,200.00 Peyton Approved Adjusting Journal Entries 2017 Date Accounts Debit Credit 31-Dec Depreciation Expense Accumulated depreciation 31-Dec Amortization Expense Accumulated Amortization 31-Dec Interest Expense Interest Payable 31-Dec Insurance Expense Prepaid Insurance 31-Dec Baking Cost of Goods Sold Baking Supplies 31-Dec Office Supplies Expense Office Supplies 31-Dec Wages Expense Wages Payable - - Peyton Approved Income Statement For Year Ending 12/31/2017 Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold (FIFO) Baking Cost of Goods Sold Gross Profit (FIFO) - - Operating Expenses: Rent Expense Interest Expense Insurance Expense Depreciation Expense Amortization Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Total Operating Expenses: - Net Income (FIFO) - Peyton Approved Closing Entries For Year Ending 12/31/2017 Date Accounts Debit 31-Dec Bakery Sales Merchandise Sales Income Summary 31-Dec Income Summary (FIFO) Baking Cost of Goods Sold Rent Expense Interest Expense Insurance Expense Depreciation Expense Amortization Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Cost of Goods Sold (FIFO) 31-Dec Income Summary (FIFO) Retained Earnings FIFO - - 31-Dec Retained Earnings Dividends - Credit - - - Peyton Approved Statement of Retained Earnings For Year Ending 12/31/2017 Beginning Balance: plus Net Income less Dividends: Ending Balance: - - Peyton Approved Balance Sheet As of December 31, 2017 Assets Current Assets: Cash Baking Supplies Merchandise Inventory (FIFO) Prepaid Rent Prepaid Insurance Office Supplies Accounts Receivable Total Current Assets - Long Term/Fixed Assets: Baking Equipment Accumulated Depreciation Leasehold Improvements Accumulated Amortization - Trademark Total Assets: - Peyton Approved Balance Sheet As of December 31, 2017 Liabilities and Owners' Equity Current Liabilities: Accounts Payable Wages Payable Interest Payable Total Current Liabilities - Long Term Liabilities: Notes Payable Loans Payable Total Long Term Liabilities: Total Liabilities: - Common Stock Retained Earnings Total Equity - Total Liabilities & Equity - 2017 Quick Ratio Gross Margin Net Margin Return on Sales Return on Equity 2016 2015 Industry Standard 2.2 0.55 0.22 0.24 0.9 2.8 0.7 0.32 0.26 0.78 1.75 0.7 0.24 0.23 0.8
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Running head: FINANCIAL STATEMENT PRODUCTION

Financial Statement Production
Name
Institutional Affiliation

1

FINANCIAL STATEMENT PRODUCTION

2

Financial Statement Production and Milestone One
The accounting cycle usually is referred as a sequences of stages each and every
bookkeeper must take and arrange financials for an establishment, associ...


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