Need help with 8-11

Create financial statements by properly employing prescribedmethods in accordance with generally accepted accountingprinciples: A. Step Eight: Prepare the financial statements. Notethat you must use your adjusted trial balance to prepare the incomestatement, statement of ownerâs equity, and balance sheet. You mustcomplete these statements in this order, as there areinterdependencies among them. B. Step Nine: Complete the âClosingEntriesâ tab in your workbook by closing all temporary incomestatement amounts to create closing entries. C. Step Ten: Preparethe âPost Closing Trial Balanceâ tab for the next accountingperiod. [ACC-201-03] D. Step Eleven: Prepare the reversing entriesin the âReversing Entriesâ tab of your workbook.

Here is all of the info to go along with it:

July 1: You take $10,000 from your personal savings account andbuy common stock in Peyton Approved. July 1: Purchase $6,500 inbaking supplies from vendor, on account. July 3: Your parents lendthe company $10,000 cash in exchange for a two-year, 6% notepayable. Interest and the principal are repayable at maturity. July7: Enter into a lease agreement for bakery space. The agreement isfor 1 year. The rent is $1,500 per month, and the last monthâs rentpayment of $1,500 is required at time of lease agreement. Thepayment was made in cash. Lease period is effective July 1, 2018,through June 30, 2019. July 10: Pay $375 to the county for abusiness license. July 11: Purchase a cash register for $250(deemed to be not material enough to qualify as depreciableequipmentâuse misc. exp.). July 13: You have baking equipment,including an oven and mixer, which you have been using for yourhome-based business and will now start using in the bakery. Youestimate that the equipment is currently worth $6,000, and youtransfer the equipment into the business in exchange for additionalcommon stock. The equipment has a 5-year useful life. July 13: Pay$200 for business cards/flyers/posters/ads to use for advertising.July 14: Pay $300 for office supplies. July 15: Hire part-timehelper to be paid $12 per hour. Pay periods are the 1st through the15th and 16th through the end of the month, with paydays being the20th for the first pay period and the 5th of the following monthfor the second pay period. (No entry is required on this date; itis here for informational purposes only.) July 30: Receivedtelephone bill for July in amount of $75. Payment is due on August10. 6 July 31: Pay $2,400 for a 12-month insurance policy. Policyeffective dates are August 1, 2018, through July 31, 2019. July 31:Accrue wages earned for employee for period of 16th through 31st ofJuly (Wage calculations table provided below). July 31: Total Julybakery sales were $15,000. $5,000 of these sales are on accountsreceivable. Step Two Data (Click on the link to return to theprompt.) The following events occur in August, 2018: August 5: Paidemployee for period ending 7/31. August 8: Receive payments fromcustomers towards accounts receivable in amount of $3,800. August10: Paid July telephone bill. August 15: Purchase additional bakingsupplies in amount of $5,000 from vendor, on account. August 15:Accrue wages earned for employee from period of 1st through 15th ofAugust (Wage calculations table provided below). August 15: Payrent on bakery space. August 18: Receive payments from customerstowards accounts receivable in amount of $3,000. August 20: Paid$8,500 toward baking supplies vendor payable. August 20: Payemployee for period ending 8/15. August 22: $300 in office suppliespurchased. August 31: Received telephone bill for August in amountof $75. Payment is due on September 10. 7 August 31: Accrue wagesearned for employee for period of August 16th through August 31st(Wage calculations table provided below). August 31: August bakerysales total $20,000. $7,500 of this total is on accountsreceivable. Step Three (Click on the link to return to the prompt.)Updated Scenario: Many customers have been asking for morehypoallergenic products, so in September you start carrying a lineof hypoallergenic shampoos on a trial basis. The followinginformation relates to the purchase and sales of the shampoo: ï· Youuse the perpetual inventory method. Although you could use thefollowing valuation methodsâFIFO, LIFO, or weighted average, youchoose to use the FIFO method. Data: The following events occur inSeptember, 2018: September 1: Paid dividends to self in amount of$10,000. September 5: Pay employee for period ending 8/31.September 7: Purchase merchandise for resale. See âInventoryValuationâ tab for details. September 8: Receive payments fromcustomers toward accounts receivable in amount of $4,000. September10: Pay August telephone bill. September 11: Purchase bakingsupplies in amount of $7,000 from vendor on account. September 13:Paid on supplies vendor account in amount of $5,000. September 15:Accrue employee wages for period of September 1 through September15. September 15: Pay rent on bakery space: $1,500. 8 September 15:Record merchandise sales transaction. See âInventory Valuationâ tabfor details. September 15: Record impact of sales transaction onCOGS and the inventory asset. See âInventory Valuationâ tab fordetails. September 20: Pay employee for period ending 9/15.September 20: Purchase merchandise inventory for resale tocustomers. See âInventory Valuationâ tab for details. September 24:Record sales of merchandise to customers. See âInventory Valuationâtab for details. September 24: Record impact of sales transactionon COGS and the inventory asset. See âInventory Valuationâ tab fordetails. September 30: Purchase merchandise inventory for resale tocustomers. See âInventory Valuationâ tab for details. September 30:Accrue employee wages for period of September 16th throughSeptember 30th September 30: Total September bakery sales are$20,000. $6,000 of these sales are on accounts receivable. Step SixData (Click on the link to return to the prompt.) On September 30,the following adjustments must be made: ï· [Note: This is a sample.]Depreciation of baking equipment transferred to company on 7/13.Assume a half month of depreciation in July using the straight-linemethod. ï· Accrue interest for note payable. Assume a full month ofinterest for July. (6% annual interest on $10,000 loan fromparents.) ï· Record insurance used for the year. ï· Actual bakingsupplies on-hand as of September 30 are $1,100. ï· Office supplieson-hand as of September 30 are $50. Wage calculation data: 9 MonthHours Rate Pay 31 Jul. 10 12 120 15 Aug. 40 12 480 31 Aug. 35 12420 15 Sep. 38 12 456 30 Sep. 40 12 480

PEYTON APPROVED
General Journal for the period from July, 1 to September, 30
Date	Account Title	Debit	Credit
July, 1	Cash	$10,000
	Common Stock		$10,000
July, 1	Baking Supplies	$6,500
	Accounts Payable		$6,500
July, 3	Cash	$10,000
	6% Note Payable		$10,000
July, 7	Prepaid Rent	$1,500
	Cash		$1,500
July, 10	Licensing fee	$375
	Cash		$375
July, 11	Miscellaneous Expense	$250
	Cash		$250
July, 13	Baking Equipment	$6,000
	Common Stock		$6,000
July, 13	Advertising expense	$200
	Cash		$200
July, 14	Office Supplies	$300
	Cash		$300
July, 30	Telephone expense	$75
	Accounts Payable		$75
July, 31	Prepaid Insurance	$2,400
	Cash		$2,400
July, 31	Salaries expense	$120
	Salaries payable		$120
July, 31	Cash	$10,000
	Accounts Receivable	$5,000
	Sales		$15,000
Aug, 5	Salaries payable	$120
	Cash		$120
Aug, 8	Cash	$3,800
	Accounts Receivable		$3,800
Aug,10	Accounts Payable	$75
	Cash		$75
Aug,15	Baking Supplies	$5,000
	Accounts Payable		$5,000
Aug,15	Salaries expense	$480
	Salaries payable		$480
Aug,15	Rent Expense	$1,500
	Cash		$1,500
Aug,18	Cash	$3,000
	Accounts Receivable		$3,000
Aug,20	Accounts Payable	$8,500
	Cash		$8,500
Aug,20	Salaries payable	$480
	Cash		$480
Aug,22	Office Supplies	$300
	Cash		$300
Aug,31	Telephone expense	$75
	Accounts Payable		$75
Aug,31	Salaries expense	$420
	Salaries payable		$420
Aug,31	Cash	$12,500
	Accounts Receivable	$7,500
	Sales		$20,000
Sept, 1	Dividend	$10,000
	Cash		$10,000
Sept, 5	Salaries payable	$420
	Cash		$420
Sept, 8	Cash	$4,000
	Accounts Receivable		$4,000
Sept,10	Accounts Payable	$75
	Cash		$75
Sept,11	Baking Supplies	$7,000
	Accounts Payable		$7,000
Sept,13	Accounts Payable	$5,000
	Cash		$5,000
Sept,15	Salaries expense	$456
	Salaries payable		$456
Sept,15	Rent Expense	$1,500
	Cash		$1,500
Sept,20	Salaries payable	$456
	Cash		$456
Sept,30	Salaries expense	$480
	Salaries payable		$480
Sept,30	Cash	$14,000
	Accounts Receivable	$6,000
	Sales		$20,000

	Unadjusted Trial Balance		Adjusting Entries		Adjusted Trial Balance
Account	Debit	Credit	Debit	Credit	Debit	Credit
Cash	25,356.75				25,356.75
Baking Supplies	18,500.00			17,400.00	1,100.00
Merchandise Inventory	175.45				175.45
Prepaid Rent	1,500.00				1,500.00
Prepaid Insurance	2,400.00			400.00	2,000.00
Baking Equipment	6,000.00				6,000.00
Misc. Supplies	600.00			550.00	50.00
Accounts Receivable	7,700.00				7,700.00
Notes Payable		10,000.00				10,000.00
Accounts Payable	2,000.00				2,000.00
Wages Payable		480.00				480.00
Common Stock		16,000.00				16,000.00
Dividends	10,000.00				10,000.00
Bakery Sales		55,000.00				55,000.00
Merchandise sales		221.00				221.00
Baking Supplies Expense			17,400.00		17,400.00
Rent Expense	4,500.00				4,500.00
Insurance Expense			400.00		400.00
Misc. Expense	250.00				250.00
Business License Expense	375.00				375.00
Advertising Expense	200.00				200.00
Wages Expense	1,836.00				1,836.00
Telephone Expense	150.00				150.00
COGS	157.80				157.80
Depreciation Expense			250.00		250.00
Accumulated Depreciation				250.00		250.00
Interest Expense			150.00		150.00
Interest Payable			150.00		150.00
Misc. Supplies Expense			550.00		550.00
Total	81,701.00	81,701.00	18,750.00	18,750.00	82,101.00	82,101.00

beigewombat114

Henriettaâs Pine Bakery

Background

You are an Analyst for the professional service firm, BUSI 1043LLP. Your firm specializes in providing a wide variety of internalbusiness solutions for different clients. Given the outstandingfeedback you received on your first engagement working for BigSpenders Inc., a Senior Manager in the Financial Advisory grouprequested your support on a compilation engagement.

Additional Information

Henriettaâs was established in 1963 when it first opened itsdoors in Dwight, Muskoka on highway 60. Over the past 50 years,there have been four owners and is currently owned by Carine &Geoff Harris who incorporated and took over the store on January 1,2013. Their sons, Kyle and Nicholas have been an intricate part ofthe business from dishwashing to head bakers. Henrietta's has grownover the years with the addition of new items all the time, but the"Sticky Buns and Clouds" remain the most popular items amongst the150 varieties of breads and pastries.

Henriettaâs runs out of 90 square meters (1,000 share feet) ofspace. It has one entrance into the bakery and doors leading out tohighway 60. Henriettaâs pays $5,000 per month for the rental of thespace. Carine and Geoff were able to negotiate with the landlordand were not required to pay the first monthâs rend in advance. Allof the rental payments are current and up to date. For the last twoyears, Henriettaâs has had a very reliable accountant prepare itsyear-end financial statements and everything has been correct. Thisyear, Henriettaâs accountant retired and Geoff did the best hecould recording his own financial information. For the informationhe was not sure about, he kept all of the required supportingdocumentation. Geoff hired your firm, BUSI 1043 LLP to prepare hisfinancial statements for the year. Geoff supplied you with hisunadjusted trial balance and the information in Exhibit I to assistyou.

Supplementary information:

The amount currently sitting in prepaids arose due the insurancepolicy last year. Geoff didnât know how to correct it, so he leftit. This yearâs insurance policy was purchased on November 1 for$9,000. The policy runs from November 1 to October 31 of eachyear.

Geoff has a note that he owed $900 in wages to his employees forthe period ending December 31^st.

The loan was incurred when the bakery was opened. The loancarried an interest rate of 8%. The interest is payable two monthsafter year end and the principal is due in 2019.

Henriettaâs will sometimes book special events with smallorganizations that are allowed to pay after the event has takenplace. On December 29^th, a small company had a gatheringat the bakery. The company was billed $1,089 and has 30 days to payit. Geoff has not yet recorded this in his financial records.

Henriettaâs declared a dividend of $5,000 on December30^th.

Geoff didnât know how to record amortization for the year and soleft it for you to record. Amortization for all assets is chargedusing a straight-line method by taking the cost of the asset anddividing it by its expected useful life. The assets have expecteduseful lives as follows:

Computer: 5 years

Bakery equipment: 10 years

Furniture and fixtures: 20 years

The information shows that Henriettaâs owes $400 for a telephonebill and $400 for electricity for December. These amounts have notbeen recorded yet.

Exhibit I

Henriettaâs Pine Bakery

Unadjusted Trial Balance

December 31, 2015

Account Name	Debit	Credit
Cash	$35,000
Accounts Receivable	5,600
Food Inventory	21,000
Merchandise Inventory	62,500
Prepaids	3,400
Computers	30,000
Accumulated Amortization â Computers		12,000
Bakery Equipment	90,000
Accumulated Amortization â Bakery Equipment		18,000
Furniture and Fixtures	150,000
Accumulated Amortization â Furniture and Fixtures		15,000
Accounts Payable		18,000
Accrued Liabilities		-
Interest Payable
Dividend Payable		-
Long-term Loan		220,000
Common Shares		50,000
Retained Earnings		22,000
Food Revenue		468,500
Internet Revenue		127,000
Merchandise Revenue		103,000
Food Expense	240,000
Internet Expense	54,000
Electricity Expense	65,000
Telephone Expense	20,000
Interest Expense	0
Salary Expense	200,000
Insurance Expense	9,000
Supplies Expense	8,000
Depreciation Expense	-
Rent Expense	60,000
	1,053,500	1,053,500

Required

Based on the information you have, prepare the adjusting journalentries, an adjusting trial balance, the statement of earnings(income statement), statement of financial position (balancesheet), and statement of retained earnings. After you havecompleted the statements, prepare the closing journal entries andthe posting closing trial balance. Ensure you show all of yourwork, and prepare proper journal entries and properly formattedfinancial statements.

maroontrout45

Henriettaâs Pine Bakery

Background

You are an Analyst for the professional service firm, BUSI 1043LLP. Your firm specializes in providing a wide variety of internalbusiness solutions for different clients. Given the outstandingfeedback you received on your first engagement working for BigSpenders Inc., a Senior Manager in the Financial Advisory grouprequested your support on a compilation engagement.

Additional Information

Henriettaâs was established in 1963 when it first opened itsdoors in Dwight, Muskoka on highway 60. Over the past 50 years,there have been four owners and is currently owned by Carine &Geoff Harris who incorporated and took over the store on January 1,2013. Their sons, Kyle and Nicholas have been an intricate part ofthe business from dishwashing to head bakers. Henrietta's has grownover the years with the addition of new items all the time, but the"Sticky Buns and Clouds" remain the most popular items amongst the150 varieties of breads and pastries.

Henriettaâs runs out of 90 square meters (1,000 share feet) ofspace. It has one entrance into the bakery and doors leading out tohighway 60. Henriettaâs pays $5,000 per month for the rental of thespace. Carine and Geoff were able to negotiate with the landlordand were not required to pay the first monthâs rend in advance. Allof the rental payments are current and up to date. For the last twoyears, Henriettaâs has had a very reliable accountant prepare itsyear-end financial statements and everything has been correct. Thisyear, Henriettaâs accountant retired and Geoff did the best hecould recording his own financial information. For the informationhe was not sure about, he kept all of the required supportingdocumentation. Geoff hired your firm, BUSI 1043 LLP to prepare hisfinancial statements for the year. Geoff supplied you with hisunadjusted trial balance and the information in Exhibit I to assistyou.

Supplementary information:

The amount currently sitting in prepaids arose due the insurancepolicy last year. Geoff didnât know how to correct it, so he leftit. This yearâs insurance policy was purchased on November 1 for$9,000. The policy runs from November 1 to October 31 of eachyear.

Geoff has a note that he owed $900 in wages to his employees forthe period ending December 31^st.

The loan was incurred when the bakery was opened. The loancarried an interest rate of 8%. The interest is payable two monthsafter year end and the principal is due in 2019.

Henriettaâs will sometimes book special events with smallorganizations that are allowed to pay after the event has takenplace. On December 29^th, a small company had a gatheringat the bakery. The company was billed $1,089 and has 30 days to payit. Geoff has not yet recorded this in his financial records.

Henriettaâs declared a dividend of $5,000 on December30^th.

Geoff didnât know how to record amortization for the year and soleft it for you to record. Amortization for all assets is chargedusing a straight-line method by taking the cost of the asset anddividing it by its expected useful life. The assets have expecteduseful lives as follows:

Computer: 5 years

Bakery equipment: 10 years

Furniture and fixtures: 20 years

The information shows that Henriettaâs owes $400 for a telephonebill and $400 for electricity for December. These amounts have notbeen recorded yet.

Exhibit I

Henriettaâs Pine Bakery

Unadjusted Trial Balance

December 31, 2015

Account Name	Debit	Credit
Cash	$35,000
Accounts Receivable	5,600
Food Inventory	21,000
Merchandise Inventory	62,500
Prepaids	3,400
Computers	30,000
Accumulated Amortization â Computers		12,000
Bakery Equipment	90,000
Accumulated Amortization â Bakery Equipment		18,000
Furniture and Fixtures	150,000
Accumulated Amortization â Furniture and Fixtures		15,000
Accounts Payable		18,000
Accrued Liabilities		-
Interest Payable
Dividend Payable		-
Long-term Loan		220,000
Common Shares		50,000
Retained Earnings		22,000
Food Revenue		468,500
Internet Revenue		127,000
Merchandise Revenue		103,000
Food Expense	240,000
Internet Expense	54,000
Electricity Expense	65,000
Telephone Expense	20,000
Interest Expense	0
Salary Expense	200,000
Insurance Expense	9,000
Supplies Expense	8,000
Depreciation Expense	-
Rent Expense	60,000
	1,053,500	1,053,500

Required

Based on the information you have, prepare the

1) adjusting journal entries,

2) an adjusting trial balance,

3) the statement of earnings (income statement),

4) statement of financial position (balance sheet), andstatement of retained earnings. After you have completed thestatements,

5) prepare the closing journal entries and the

6) posting closing trial balance.

Ensure you show all of your work, and prepare proper journalentries and properly formatted financial statements.

blueplatypus48

ACCT 2301 Lecture Notes - Lecture 12: Interest Expense, Market Rate

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