Question

Complete the “Closing Entries” tab in your workbook by closing all temporary income statement amounts to create closing entries.

Prepare the “Post Closing Trial Balance” tab for the next accounting period.

Adjusting entries Debit Credit Peyton Approved Trial Balance 2018 Unadjusted trial balance Debit Credit 32,236.75 18,500.00 175.65 1,500.00 2,400.00 6,000.00 17,400.00 400.00 250.00 550.00 600.00 7,700.00 10,000.00 150.00 5,000.00 480.00 16,000.00 Account Cash Baking Supplies Merchandise Inventory (FIFO) Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Office Supplies Accounts Receivable Notes Payable Interest Payable Accounts Payable Wages Payable Common Stock Dividends Bakery Sales Merchandise Sales Baking Supplies Expense Rent Expense Interest Expense Insurance Expense Depreciation Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense COGS (FIFO) Adjusted trial balance Debit Credit 32,236.75 1,100.00 175.65 1,500.00 2,000.00 6,000.00 250.00 50.00 7,700.00 10,000.00 150.00 5,000.00 480.00 16,000.00 10.000.00 55,000.00 221.00 17,400.00 4,500.00 150.00 400.00 250.00 250.00 550.00 375.00 200.00 1,956.00 150.00 157.60 10.000.00 55,000.00 221.00 17,400.00 4,500.00 150.00 400.00 250.00 250.00 550.00 375.00 200.00 1,956.00 150.00 157.60 Total: (FIFO) 86,701.00 86,701.00 18,750.00 18,750.00 87,101.00 87,101.00
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Answer 1

Note: In Balance Sheet under Long-Term Liabilities, Dividends is incorrect. It should be Notes Payable.

Peyton Approved
Closing Entries
Qtr ending 9/30/2018
Date	Accounts	Debit	Credit
30-Sep	Bakery sales	55000.00
	Merchandise sales	221.00
	Income summary		55221.00
30-Sep	Income summary (FIFO)	26338.60
	Baking supplies expense		17400.00
	Rent expense		4500.00
	Wages expense		1956.00
	Office supplies expense		550.00
	Business license expense		375.00
	Misc. expense		250.00
	Depreciation expense		250.00
	Insurance expense		400.00
	Advertising expense		200.00
	Interest expense		150.00
	Telephone expense		150.00
	COGS FIFO		157.60
30-Sep	Income summary (FIFO)	28882.40
	Retained earnings FIFO		28882.40
30-Sep	Retained earnings FIFO	10000.00
	Dividends		10000.00

Peyton Approved
Post Closing Trial Balance
Qtr. Ending 9/30/2018
Account	Debit	Credit
Cash	32236.75
Baking supplies	1100.00
Merchandise inventory (FIFO)	175.65
Prepaid rent	1500.00
Prepaid insurance	2000.00
Baking equipment	6000.00
Accumulated depreciation		250.00
Office supplies	50.00
Accounts receivable	7700.00
Accounts payable		5000.00
Wages payable		480.00
Interest payable		150.00
Notes payable		10000.00
Common stock		16000.00
Retained earnings FIFO		18882.40
Totals	50762.40	50762.40