accountingworkbookmilestone1.xlsx

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    Chart of Accounts

    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.
    Asset Accounts Liability Accounts Equity Accounts
    Acct # Acct # Acct #
    Cash 101 Notes Payable 201 Common Stock 301
    Baking Supplies 102 Accounts Payable 202 Dividends 302
    Prepaid Rent 103 Wages Payable 203 Cost of Goods Sold 303
    Prepaid Insurance 104 Interest Payable 204
    Baking Equipment 105
    Office Supplies 106
    Accounts Receivable 107
    Accumulated Depreciation 108
    Merchandise Inventory 109 Revenue Accounts
    Acct #
    Bakery Sales 401
    Merchandise Sales 402
    Expense Accounts
    Acct #
    Baking Supplies Expense 501
    Rent Expense 502
    Insurance Expense 503
    Misc. Expense 504
    Business License Expense 505
    Advertising Expense 506
    Wages Expense 507
    Telephone Expense 508
    Interest Expense 509
    Depreciation Expense 510
    Office Supplies Expense 511
    Cash
    Baking Supplies
    Prepaid Rent
    Prepaid Insurance
    Baking Equipment
    Office Supplies
    Accounts Receivable
    Accumulated Depreciation
    Merchandise Inventory
    Notes Payable
    Accounts Payable
    Wages Payable
    Interest Payable
    Common Stock
    Dividends
    Bakery Sales
    Merchandise Sales
    Baking Supplies Expense
    Rent Expense
    Insurance Expense
    Misc. Expense
    Business License Expense
    Advertising Expense
    Wages Expense
    Telephone Expense
    Interest Expense
    Depreciation Expense
    Office Supplies Expense
    Cost of Goods Sold

    October Journal Entries

    A Company
    General Journal Entries
    October, 20xx
    Date Accounts Debit Credit
    1-Oct $
    $
    1-Oct
    3-Oct
    7-Oct
    10-Oct
    11-Oct
    13-Oct
    13-Oct
    14-Oct
    30-Oct
    31-Oct
    31-Oct
    31-Oct
    Total – 0 – 0 <== Do the debits equal the credits? (they should)

    November Journal Entries

    A Company
    General Journal Entries
    November, 20xx
    Date Accounts Debit Credit
    Total – 0 – 0 <== Do the debits equal the credits? (they should)

    December Journal Entries

    A Company
    General Journal Entries
    December, 20xx
    Date Accounts Debit Credit
    Be sure to review the Inventory Valuation tab (Columns M-P) for all Inventory related journal entries as they are given to you!
    Total – 0 – 0 <== Do the debits equal the credits? (they should)

    Inventory Valuation

    FIFO
    Purchases Sales Ending Inventory Purchases
    Date No. of Items Unit Price Total Price No. of Items Unit Price Total Price No. of Items Unit Price Total Price Date Microsoft: Below are the journal entries for each inventory related transaction! All you need to do is copy and paste it into the correct dates on the December Journal tab! Dr Cr 12/7: 10 boxes purchased at $6
    7-Dec 10 $ 6.00 $ 60.00 10 $ 6.00 $ 60.00 7-Dec Merchandise Inventory (10 x $6) 60.00 12/20: 20 boxes purchased at $6.10
    Cash 60.00 12/30: 25 boxes purchased at $6.05
    15-Dec 8 $ 6.00 $ 48.00 2 $ 6.00 $ 12.00 Purchased inventory Sales – selling price, $8.50 a box
    12/15: 8 boxes
    20-Dec 20 $ 6.10 $ 122.00 2 $ 6.00 $ 12.00 15-Dec Cash (8 x $8.50) 68.00 12/24: 18 boxes
    20 $ 6.10 $ 122.00 Merchandise Sales Revenue 68.00
    22 $ 134.00 Record sale of inventory
    24-Dec 2 $ 6.00 $ 12.00 15-Dec Cost of Goods Sold (8 X $6) 48.00
    16 $ 6.10 $ 97.60 4 $ 6.10 $ 24.40 Merchandise Inventory 48.00
    18 $ 109.60 Recorded the cost of goods sold
    30-Dec 25 $ 6.05 $ 151.25 4 $ 6.10 $ 24.40 20-Dec Merchandise Inventory (20 x $6.10 ) 122.00
    25 $ 6.05 $ 151.25 Cash 122.00
    29 $ 175.65
    Net Inventory 55 $ 333.25 26 $ 157.60 29 $ 175.65 24-Dec Cash (18 x 8.50) 153.00
    Merchandise Sales Revenue 153.00
    Record sale of inventory
    24-Dec Cost of Goods Sold (2 x $6)+(16 x $6.10) 109.60
    Merchandise Inventory 109.60
    Recorded the cost of goods sold
    30-Dec Merchandise Inventory (25 x $6.05) 151.25
    Cash 151.25

    T-Accounts – autofill

    date Cash date date Notes Payable date Business License exp Common Stock
    1-Oct $ $ – 0 3-Oct 10-Oct $ – 0 $ 1-Oct
    3-Oct $ – 0 $ – 0 13-Oct
    $ – 0 7-Oct $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0
    $ – 0 10-Oct $ – 0 $ – 0 $ – 0
    $ – 0 11-Oct
    $ – 0 13-Oct
    $ – 0 14-Oct
    $ – 0 31-Oct
    31-Oct $ – 0
    $ – 0 5-Nov
    8-Nov $ – 0
    $ – 0 10-Nov
    18-Nov $ – 0
    $ – 0 15-Nov
    $ – 0 20-Nov Accounts Rec.
    $ – 0 20-Nov 31-Oct – 0
    $ – 0 22-Nov – 0 8-Nov
    30-Nov $ – 0 – 0 18-Nov
    $ – 0 1-Dec 30-Nov – 0
    $ – 0 5-Dec – 0 8-Dec
    $ – 0 7-Dec 31-Dec – 0
    8-Dec $ – 0
    $ – 0 10-Dec $ – 0 $ – 0
    $ – 0 13-Dec $ – 0
    $ – 0 15-Dec
    15-Dec $ – 0
    $ – 0 20-Dec
    $ – 0 20-Dec
    24-Dec $ – 0
    $ – 0 30-Dec
    31-Dec $ – 0
    $ – 0 $ – 0
    $ – 0
    Misc. expense Baking equipment Advertising expense
    11-Oct $ – 0 13-Oct $ – 0 13-Oct $ – 0
    $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0
    $ – 0 $ – 0 $ – 0
    Baking supplies Office supplies Rent expense
    1-Oct $ – 0 14-Oct $ – 0 7-Oct $ – 0
    15-Nov $ – 0 22-Nov $ – 0 15-Nov $ – 0
    11-Dec $ – 0 15-Dec $ – 0
    $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0
    $ – 0 $ – 0 $ – 0
    Prepaid rent Prepaid insurance Bakery Sales
    7-Oct $ – 0 31-Oct $ – 0 $ – 0 31-Oct
    $ – 0 30-Nov
    $ – 0 31-Dec
    $ – 0 $ – 0 $ – 0 $ – 0 $ – 0 $ – 0
    $ – 0 $ – 0 $ – 0
    Accounts payable Salary and wages expense Salaries and wages payable
    $ – 0 1-Oct 31-Oct $ – 0 $ – 0 31-Oct
    $ – 0 31-Oct 15-Nov $ – 0 5-Nov $ – 0
    10-Nov $ – 0 30-Nov $ – 0 $ – 0 15-Nov
    $ – 0 15-Nov 15-Dec $ – 0 20-Nov $ – 0
    20-Nov $ – 0 31-Dec $ – 0 $ – 0 30-Nov
    $ – 0 30-Nov 5-Dec $ – 0
    10-Dec $ – 0 $ – 0 $ – 0 $ – 0 15-Dec
    $ – 0 11-Dec $ – 0 20-Dec $ – 0
    13-Dec $ – 0 $ – 0 31-Dec
    $ – 0 $ – 0
    $ – 0
    $ – 0 $ – 0
    $ – 0
    Telephone expense Dividends COGS
    30-Oct $ – 0 1-Dec $ – 0 15-Dec $ – 0
    30-Nov $ – 0 $ – 0 $ – 0 24-Dec $ – 0
    $ – 0 $ – 0 $ – 0 $ – 0 $ – 0
    $ – 0 $ – 0
    Merchandise Sales Revenue Merch. Inv. FIFO
    $ – 0 15-Dec 7-Dec $ – 0
    $ – 0 24-Dec $ – 0 15-Dec
    20-Dec $ – 0
    $ – 0 $ – 0 $ – 0 24-Dec
    $ – 0 30-Dec $ – 0
    $ – 0 $ – 0
    $ – 0

    Adjusting Entries

    A Company
    Adjusting Journal Entries
    20XX
    Date Accounts Debit Credit
    31-Dec Depreciation Expense
    Accumulated Depreciation
    <== Interest adjustment goes here
    <== Interest adjustment goes here
    <== Insurance adjustment goes here
    <== Insurance adjustment goes here
    <== Baking supplies adjustment goes here
    <== Baking supplies adjustment goes here
    <== Office supplies adjustment goes here
    <== Office supplies adjustment goes here
    – 0 – 0 <== Do the debits equal the credits? (they should)

    Trial Balance

    A Company
    Trial Balance
    20xx
    Unadjusted trial balance Adjusting entries Adjusted trial balance
    Account Debit Credit Debit Credit Debit Credit
    Cash – 0
    Baking Supplies – 0
    Merchandise Inventory
    Prepaid Rent
    Prepaid Insurance – 0
    Baking Equipment
    Accumulated Depreciation – 0
    Office Supplies – 0
    Accounts Receivable
    Notes Payable
    Interest Payable – 0
    Accounts Payable
    Wages Payable
    Common Stock
    Dividends
    Bakery Sales
    Merchandise Sales
    Baking Supplies Expense – 0
    Rent Expense
    Interest Expense – 0
    Insurance Expense – 0
    Depreciation Expense – 0
    Misc. Expense
    Office Supplies Expense – 0
    Business License Expense
    Advertising Expense
    Wages Expense
    Telephone Expense
    COGS
    Retained Earnings
    Total: – 0 – 0 – 0 – 0 – 0 – 0
    Do these two columns tie to the debits and credits on the adjusting entries tab?
    Debits should equal credits Debits should equal credits
    Debits should equal credits
    `

    Income Statement

    A Company
    Income Statement
    For Qtr. Ending 12/31/20XX
    Revenues
    Total Revenues – 0
    <== Don't forget the COGS!
    Gross Profit – 0
    Operating Expenses:
    Baking Supplies Expense – 0
    Total Operating Expenses: – 0
    Net Income – 0

    Statement of Stockholder Equity

    A Company
    Statement of Stockholder's Equity
    For Qtr. Ending 12/31/20xx
    Common Stock Retained Earnings Total
    Beginning Balances, September 30 0 0 0
    Issued Common Stock
    Net Income
    Dividends Make sure your dividends are negative so the formula subtracts them
    Ending Balances, December 31: – 0 – 0 – 0

    Balance Sheet

    A Company
    Balance Sheet
    As of December 31, 20XX
    Assets Liabilities and Owners' Equity
    Current Assets: Current Liabilities:
    Total Current Liabilities – 0
    Long Term Liabilities:
    Total Current Assets – 0 Total Long Term Liabilities: – 0
    Total Liabilities: – 0
    Shareholder's Equity:
    Non-Current Assets:
    Microsoft: show number as negative as the total formula will subtract it for you. Total Equity – 0
    Baking Equipment (Net) – 0
    Total Assets: – 0 Total Liabilities & Equity – 0 <== Do the debits equal the credits? (they should)

    Closing Entries

    A Company
    Closing Entries
    Qtr ending 12/31/20xx
    Date Accounts Debit Credit Note** We are closing out the same accounts that are listed on the income statement
    31-Dec Bakery Sales
    Merchandise Sales
    Retained Earnings
    31-Dec Retained Earnings
    Baking Supplies Expense
    Rent Expense
    Wages Expense
    Misc Expense
    Business License Expense
    Office Expense
    Depreciation Expense
    Insurance Expense
    Advertising Expense
    Interest Expense
    Telephone Expense
    COGS
    31-Dec Retained Earnings
    Dividends

    Post-Closing Trial Balance

    A Company
    Post-Closing Trial Balance
    Qtr. Ending 12/31/20xx
    Unadjusted Trial Balance
    Account Debit Credit
    Cash Note** These are the same accounts that are listed on the balance sheet
    Baking Supplies
    Merchandise Inventory
    Prepaid Rent
    Prepaid Insurance
    Baking Equipment
    Accumulated Depreciation <== Accumulated depreciation goes in the debit column – as a reduction of the assets (so be sure it is a negative number!) just as you have on the balance sheet.
    Office Supplies
    Accounts Receivable
    Accounts Payable
    Wages Payable
    Interest Payable
    Notes Payable
    Common Stock
    Retained Earnings
    Total – 0 – 0 <== Do the debits equal the credits? (they should)

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