FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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I have a big project due and I am unsure if I am doing this correctly. I am attaching the spreadsheet and accounting data. Can you please check over it for me and let me know if anything is calculated wrong?

 

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 insurance 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).

 

 

 

  1. 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).

 

  1. 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.

 There is also a Dec. workbook but it will only let me load two images that I need help with making sure it is correct. Then an unjusted trail budget I would like looked over. Can you help with those also?

A
B
E
F
G
A Company
2
General Journal Entries
3
October, 20xx
4
5
Date
Accounts
Debit
Credit
6
1-Oct Cash
$25,000
7
Common Stock
$25,000
Common Stock
1-Oot Baking Supplies
8
8,500.00
Accounts Payable
Baking Supplies
3-Oct| Cash
Notes Payable
10
8,500.00
11
12
10,000.00
13
10,000.00
Notes Payable
7-Oct Rent Expense
Cash
Rent Expense
14
15
3,000.00
16
3,000.00
17
Prepaid Rent
10-Oct Business License Expense
Cash
18
19
375.00
20
375.00
21
Business License Expense
22
11-Oct Miso. Expense
250.00
23
Cash
250.00
Misc. Expense
13-Oct Baking Equipment
24
25
5,000.00
26
Common Stock
5,000.00
27
Common Stock
13-Oct Advertising Expense
200.00
28
29
Cash
200.00
Advertising Expense
14-Oot Office Supplies
30
31
300.00
32
Cash
300.00
Office Supplies
30-Oct Telephone Expense
Accounts Payable
Telephone Expense
31-Oct Wages Expense
33
34
75.00
35
75.00
36
37
120.00
38
Cash
120.00
Wages Expense
31-Oct| Prepaid Insurance
39
40
1,200.00
41
Cash
1,200.00
Prepaid Insurance
31-Oct Accounts Receivable
42
43
5,000.00
Bakery Sales
Bakery Sales
44
5,000.00
45
46
47
Total
59,020.00
59,020.00
48
49
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Transcribed Image Text:A B E F G A Company 2 General Journal Entries 3 October, 20xx 4 5 Date Accounts Debit Credit 6 1-Oct Cash $25,000 7 Common Stock $25,000 Common Stock 1-Oot Baking Supplies 8 8,500.00 Accounts Payable Baking Supplies 3-Oct| Cash Notes Payable 10 8,500.00 11 12 10,000.00 13 10,000.00 Notes Payable 7-Oct Rent Expense Cash Rent Expense 14 15 3,000.00 16 3,000.00 17 Prepaid Rent 10-Oct Business License Expense Cash 18 19 375.00 20 375.00 21 Business License Expense 22 11-Oct Miso. Expense 250.00 23 Cash 250.00 Misc. Expense 13-Oct Baking Equipment 24 25 5,000.00 26 Common Stock 5,000.00 27 Common Stock 13-Oct Advertising Expense 200.00 28 29 Cash 200.00 Advertising Expense 14-Oot Office Supplies 30 31 300.00 32 Cash 300.00 Office Supplies 30-Oct Telephone Expense Accounts Payable Telephone Expense 31-Oct Wages Expense 33 34 75.00 35 75.00 36 37 120.00 38 Cash 120.00 Wages Expense 31-Oct| Prepaid Insurance 39 40 1,200.00 41 Cash 1,200.00 Prepaid Insurance 31-Oct Accounts Receivable 42 43 5,000.00 Bakery Sales Bakery Sales 44 5,000.00 45 46 47 Total 59,020.00 59,020.00 48 49
1
A Company
2
General Journal Entries
3
November, 20xx
4
Date
Accounts
Debit
Credit
5-Nov Wages Expense
120.00
6
7
Cash
120.00
Wages Payable
8-Nov Cash
3,800.00
10
Accounts Receivable
3,800.00
11
Accounts Receivable
10-Nov Telephone Expense
75.00
12
13
Cash
75.00
Telephone Expense
15-Nov Baking Supplies
Accounts Payable
Baking Supplies
15-Nov Wages Payable
Accounts Payable
Wages Payable
15-Nov Rent Expense
14
15
5,000.00
16
5,000.00
17
18
480.00
19
480.00
20
21
1,500.00
22
Cash
1,500.00
23
Rent Expense
24
18-Nov Cash
1,000.00
25
Accounts Receivable
1,000.00
26
Accounts Receivable
27
20-Nov Accounts Payable
8,500.00
28
Cash
8,500.00
Accounts Payable
20-Nov Wages Expense
Cash
Wages Expense
22-Nov Office Supplies
29
30
480.00
31
480.00
32
33
300.00
34
Cash
300.00
Office Supplies
30-Nov Telephone Expense
Accounts Payable
Telephone Expense
30-Nov Wages Payable
Accounts Payable
Wages Payable
30-Nov Accounts Receivable
Bakery Sales
35
36
75.00
37
75.00
38
39
480.00
40
480.00
41
42
7,500.00
43
7.500.00
44
Accounts Receivable
45
46
Total
29,310.00
29,310.00
47
48
expand button
Transcribed Image Text:1 A Company 2 General Journal Entries 3 November, 20xx 4 Date Accounts Debit Credit 5-Nov Wages Expense 120.00 6 7 Cash 120.00 Wages Payable 8-Nov Cash 3,800.00 10 Accounts Receivable 3,800.00 11 Accounts Receivable 10-Nov Telephone Expense 75.00 12 13 Cash 75.00 Telephone Expense 15-Nov Baking Supplies Accounts Payable Baking Supplies 15-Nov Wages Payable Accounts Payable Wages Payable 15-Nov Rent Expense 14 15 5,000.00 16 5,000.00 17 18 480.00 19 480.00 20 21 1,500.00 22 Cash 1,500.00 23 Rent Expense 24 18-Nov Cash 1,000.00 25 Accounts Receivable 1,000.00 26 Accounts Receivable 27 20-Nov Accounts Payable 8,500.00 28 Cash 8,500.00 Accounts Payable 20-Nov Wages Expense Cash Wages Expense 22-Nov Office Supplies 29 30 480.00 31 480.00 32 33 300.00 34 Cash 300.00 Office Supplies 30-Nov Telephone Expense Accounts Payable Telephone Expense 30-Nov Wages Payable Accounts Payable Wages Payable 30-Nov Accounts Receivable Bakery Sales 35 36 75.00 37 75.00 38 39 480.00 40 480.00 41 42 7,500.00 43 7.500.00 44 Accounts Receivable 45 46 Total 29,310.00 29,310.00 47 48
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