ACC 201 Final Project Peyton Approved Instructions.
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ACC 201 Final Project Peyton Approved InstructionsFor this deliverable, you will complete the accounting cycle and prepare financial statements that willprovide the result you need to assess the success of business operations.Below you will find the data required to make entries in your accounting workbook. Remember that youare following the business transactions for a three-month period from the initial stage of analysis andrecording, through the reporting process. These transactions will include:the initial setup of the businesscash and credit salesmaking payments to vendorspaying store employeesmanaging debtIt will help you to print this document as you are making your entries in your workbook. Your textbookprepares you and can be used as a reference to assist you in completing this assignment. You shouldbegin this project in Module Two.There will be two checkpoints, along the way, at which time you will submit your progress in thisworkbook to your instructor for review and feedback toward correction and successful demonstration ofthis accounting cycle as a whole. Your first check point will cover steps 1 through 4 of this workbook.The first checkpoint is in Module 3.The second checkpoint will have you submit your workbook completed through step 7 in Module 4. Youwill integrate the feedback, suggestions, and guidance your instructor provides on these steps in thecycle to ensure your success with completion of this cycle. The following steps are included:
Step 1:Complete the following in the “July Journal Entries” tab in your workbook (be sure to look for the JulyJournal Entries tab at the bottom of the Peyton Approved Student Workbook).The following events occur in July 2014:July 1 – You take $15,000 from your personal savings account and buy common stock in PeytonApproved.July 1-Purchase $8500 in baking supplies from vendor, on accountJuly 3 – Your parents lend the company $10,000 cash, in exchange for a two-year, 6% notepayable. Interest and the principal are repayable at maturity.July 7 – Pay $3000 toward lease agreement for bakery space. The agreement is for 1 year. Therent is $1,500 per month, last month’s rent was required at time of lease agreement. Leaseperiod is effective July 1st2014 through June 30th, 2015.July 10 – Pay $375 to the county for a business license.July 11 – Purchase a cash register for $250 (deemed to be not material enough to qualify asdepreciable equipment—use misc. exp.).July 13 – You have baking equipment, including an oven and mixer, which you have been usingfor your home-based business and will now start using in the bakery. You estimate that theequipment is currently worth $5,000, and you transfer the equipment into the business inexchange for additional common 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 miscellaneous (use misc. supplies).July 15 – Hire part-time helper to be paid $12 per hour. Pay periods are the 1stthrough the 15thand 16ththrough the end of the month with paydays being the 20thfor the first pay period andthe 5thof the following month for the second pay period. (No entry required on this date; forinformational purposes only)July 30- Received telephone bill for July in amount of $45. Payment is due on August 10thJuly 31 – Pay $1,200 for a 12-month insurance policy. Policy effective dates August 1, 2014through July 31st, 2015July 31- Accrue wages earned for employee for period of 16ththrough 31st of July(Wage calculations table is provided for you, below)Total July bakery sales were $15,000. $5000 of these sales on accounts receivable
Step 2:Complete the following transactions in the August Journal Entries tab in your workbookAugust 5-paid employee for period ending 7/31August 8-Receive payments from customers towards accounts receivable in amount of $3200.August 10 – paid July telephone billAugust 15- Purchase additional baking supplies in amount of $5000 from vendor, on account.August 15 – Accrue wages earned for employee from period of 1stthrough 15thof August(Wage calculations table provided below)August 15-Pay rent on bakery space $1500August 18-Receive payments from customers towards accounts receivable in amount of $1000August 20- paid $8500 toward baking supplies vendor payableAugust 20- pay employee for period ending 8/15August 22- $300 in misc. supplies purchasedAugust 31- received telephone bill for August in amount of $45. Payment is due on September10th.August 31- Accrue wages earned for employee for period of August 16ththrough August 31st(Wage calculations table provided below)August bakery sales total $20,000. $7,500 of this total on accounts receivable.