ACC 201 Milestone 3

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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	Cash	25,000.00			OK	OK	OK
	Common Stock		25,000.00		OK	OK	OK
					OK	OK	OK
1-Oct	Baking Supplies	8,500.00			OK	OK	OK
	Accounts Payable		8,500.00		OK	OK	OK
					OK	OK	OK
3-Oct	Cash	10,000.00			OK	OK	OK
	Notes Payable		10,000.00		OK	OK	OK
					OK	OK	OK
7-Oct	Prepaid Rent	1,500.00			ERROR	OK	OK
	Cash		1,500.00		ERROR	ERROR	ERROR
				This was a $3,000 cash payment.	ERROR	OK	ERROR
					OK	OK	OK
10-Oct	Business License Expense	375.00			OK	OK	OK
	Cash		375.00		OK	OK	OK
					OK	OK	OK
11-Oct	Misc. Expense	250.00			OK	OK	OK
	Cash		250.00		OK	OK	OK
					OK	OK	OK
13-Oct	Baking Equipment	5,000.00			OK	OK	OK
	Common Stock		5,000.00		OK	OK	OK
					OK	OK	OK
13-Oct	Advertising Expense	200.00			OK	OK	OK
	cash		200.00		OK	OK	OK
					OK	OK	OK
14-Oct	office supplies	300.00			OK	OK	OK
	cash		300.00		OK	OK	OK
					OK	OK	OK
30-Oct	Telephone Expense	75.00			OK	OK	OK
	Accounts Payable		75.00		OK	OK	OK
					OK	OK	OK
31-Oct	Prepaid Insurance	1,200.00			OK	OK	OK
	Cash		1,200.00		OK	OK	OK
					OK	OK	OK
31-Oct	Wages Expense	120.00			OK	OK	OK
	Wages Payable		120.00		OK	OK	OK
					OK	OK	OK
31-Oct	Cash	10,000.00			OK	OK	OK
	Accounts Receivable	5,000.00			OK	OK	OK
	Bakery Sales		15,000.00		OK	OK	OK
	Total	67,520.00	67,520.00	<== Do the debits equal the credits? (they should)

November Journal Entries

	A Company
	General Journal Entries
	November, 20xx
Date	Accounts	Debit	Credit
5-Nov	Wages Payable	120.00
	Cash		120.00
8-Nov	Cash	3,800.00
	Accounts Receivable		3,800.00
10-Nov	Accounts Payable	75.00
	Cash		75.00
15-Nov	Baking Supplies	5,000.00
	Accounts Payable		5,000.00
15-Nov	Wages Expense	480.00
	Wages Payable		480.00
15-Nov	Accounts Payable	1,500.00		What transaction is this?
	cash		1,500.00
15-Nov	Rent Expense	1,500.00
	Cash		1,500.00
18-Nov	Cash	1,000.00
	Accounts Receivable		1,000.00
20-Nov	Accounts Payable	8,500.00
	Cash		8,500.00
20-Nov	Wages Payable	480.00
	Cash		480.00
22-Nov	Office Supplies	300.00
	Cash		300.00
30-Nov	Telephone Expense	75.00
	Accounts Payable		75.00
30-Nov	Wages Expense	420.00
	Wages Payable		420.00
30-Nov	cash	12,500.00
	Accounts Receivable	7,500.00
	Bakery Sales		20,000.00
	Total	43,250.00	43,250.00	<== Do the debits equal the credits? (they should)

December Journal Entries

	A Company
	General Journal Entries
	December, 20xx
Date	Accounts	Debit	Credit
1-Dec	Dividends	10,000.00
	Cash		10,000.00
5-Dec	Wages Payable	420.00
	Cash		420.00
7-Dec	Merchandise Inventory	60.00			Be sure to review the Inventory Valuation tab (Columns M-P) for all Inventory related journal entries as they are given to you!
	cash		60.00
8-Dec	cash	4,000.00
	Accounts Receivable		4,000.00
10-Dec	Accounts Payable	75.00
	Cash		75.00
11-Dec	Baking Supplies	7,000.00
	Cash		7,000.00	This was purchased on account.
13-Dec	Accounts Payable	5,000.00
	cash		5,000.00
15-Dec	Wages Expense	456.00
	Wages Payable		456.00
15-Dec	Rent Expense	1,500.00
	cash		1,500.00
15-Dec	Cash	68.00
	Merchandise Sales		68.00
15-Dec	Cost of Goods Sold	48.00
	Merchandise Inventory		48.00
20-Dec	Wages Payable	456.00
	Cash		456.00
20-Dec	Merchandise Inventory	122.00
	Cash		122.00
24-Dec	Cash	153.00
	Merchandise Sales		153.00
24-Dec	Cost of Goods Sold	109.00		Refer to Inventory Valuation tab for correct amount.
	Merchandise Inventory		109.00
30-Dec	Merchandise Inventory	151.25
	Cash		151.25
31-Dec	Wages Expense	480.00
	Wages Payable		480.00
31-Dec	cash	19,000.00
	Accounts Receivable	6,000.00
	Bakery Sales		25,000.00
	Total	55,098.25	55,098.25	<== Do the debits equal the credits? (they should)
	Adjustments
31-Dec	Depreciation Expense	208.33
	Baking Equipment		208.33
31-Dec	Interest Expense	150.00
	Interest Payable		150.00
31-Dec	Insurance Expense	200.00
	Prepaid Insurance		200.00
31-Dec	Cost of Goods Sold	19,400.00
	Baking Supplies		19,400.00
31-Dec	Office Supplies Expense	550.00
	Office Supplies		550.00
		20,508.33	20,508.33

Adjusting Entries

	A Company
	Adjusting Journal Entries
	20XX
Date	Accounts	Debit	Credit
31-Dec	Depreciation Expense	208.33
	Baking Equipment		208.33	Asset account should remain at original cost.
	Interest Expense	150.00
	Interest Payable		150.00
	Insurance Expense	200.00
	Prepaid Insurance		200.00
	Cost of Goods Sold	19,400.00		This was for baking supplies.
	Baking Supplies		19,400.00
	Office Supplies Expense	550.00
	Office Supplies		550.00
		20,508.33	20,508.33	<== 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

	Business License exp				Common Stock
10-Oct	$ 375.00					$ 25,000.00	1-Oct
						$ 5,000.00	13-Oct
	$ 375.00	$ - 0			$ - 0	$ 30,000.00
		$ 375.00			$ 30,000.00
	Accounts Payable				Accounts Receivable
10-Nov	$ 75.00	$ 8,500.00	1-Oct	31-Oct	$ 5,000.00	$ 3,800.00	8-Nov
15-Nov	$ 1,500.00	$ 75.00	30-Oct	30-Nov	$ 7,500.00	$ 1,000.00	18-Nov
20-Nov	$ 8,500.00	$ 5,000.00	10-Nov	31-Dec	$ 6,000.00	$ 4,000.00	8-Dec
		$ 75.00	30-Nov
10-Dec	$ 75.00
13-Dec	$ 5,000.00				$ 18,500.00	$ 8,800.00
						$ 9,700.00
	$ 15,150.00	$ 13,650.00
	$ 1,500.00
	Advertising expense				Bakery Sales
13-Oct	$ 200.00					$ 15,000.00	31-Oct
						$ 20,000.00	30-Nov
						$ 25,000.00	31-Dec
	$ 200.00	$ - 0			$ - 0	$ 60,000.00
		$ 200.00			$ 60,000.00
	Baking Equipment				Baking Supplies
13-Oct	$ 5,000.00	$ 208.33	31-Dec	1-Oct	$ 8,500.00		31-Dec
				15-Nov	$ 5,000.00
				11-Dec	$ 7,000.00
	$ 5,000.00	$ 208.33
		$ 4,791.67			$ 20,500.00	$ - 0
						$ 20,500.00
	Business License Expense				Depreciation Expense
10-Oct	$ 375.00			31-Dec	$ 208.33
	$ 375.00	$ - 0			$ 208.33	$ - 0
		$ 375.00				$ 208.33
	Salaries and wages payable				Telephone Expense
5-Nov	$ 120.00	$ 120.00	31-Oct	30-Oct	$ 75.00
20-Nov	$ 480.00	$ 480.00	15-Nov	30-Nov	$ 75.00
5-Dec	$ 420.00	$ 420.00	30-Nov
20-Dec	$ 456.00	$ 456.00	15-Dec		$ 150.00	$ - 0
		$ 480.00	31-Dec			$ 150.00
	$ 1,476.00	$ 1,956.00
	$ 480.00
	COGS				Wages Expense
15-Dec	$ 48.00			31-Oct	$ 120.00
24-Dec	$ 109.00			15-Nov	$ 480.00
				30-Nov	$ 420.00
				15-Dec	$ 456.00
	$ 157.00	$ - 0		31-Dec	$ 480.00
		$ 157.00			$ 1,956.00	$ - 0
						$ 1,956.00
	Merch. Inv. FIFO				Rent Expense
7-Dec	$ 60.00	$ 48.00	15-Dec	15-Nov	$ 1,500.00
20-Dec	$ 122.00	$ 109.00	24-Dec	15-Dec	$ 1,500.00
30-Dec	$ 151.25
					$ 3,000.00	$ - 0
						$ 3,000.00
	$ 333.25	$ 157.00
		$ 176.25
	Prepaid rent				Office Supplies
7-Oct	$ 1,500.00			14-Oct	$ 300.00	$ 550.00	31-Dec
				22-Nov	$ 300.00
	$ 1,500.00	$ - 0			$ 600.00	$ 550.00
		$ 1,500.00				$ 50.00
	Notes Payable				Misc.Expe
		$ 10,000.00	3-Oct	11-Oct	$ 250.00
	$ - 0	$ 10,000.00			$ 250.00	$ - 0
	$ 10,000.00					$ 250.00
	Merchandise Sales				Merchandise Inventory
		$ 68.00	15-Dec	7-Dec	$ 60.00	$ 48.00	15-Dec
		$ 153.00	24-Dec	20-Dec	$ 122.00	$ 109.00	24-Dec
				30-Dec	$ 151.25
	$ - 0	$ 221.00			$ 333.25	$ 157.00
	$ 221.00					$ 176.25
	Interest Expense				Interest Payable
31-Dec	$ 150.00					$ 150.00	31-Dec
	$ 150.00	$ - 0			$ - 0	$ 150.00
		$ 150.00			$ 150.00
	Insurance Expense				Prepaid Insurance
31-Dec	$ 200.00			31-Oct	$ 1,200.00	$ 200.00	31-Dec
	$ 200.00	$ - 0			$ 1,200.00	$ 200.00
		$ 200.00				$ 1,000.00
	Dividends
1-Dec	$ 10,000.00
	$ 10,000.00	$ - 0
		$ 10,000.00
	cash
1-Oct	$ 25,000.00
3-Oct	$ 10,000.00
		$ 1,500.00	7-Oct
		$ 375.00	10-Oct
		$ 250.00	11-Oct
		$ 200.00	13-Oct
		$ 300.00	14-Oct
		$ 1,200.00	31-Oct
31-Oct	$ 10,000.00
8-Nov	$ 3,800.00	$ 120.00	5-Nov
18-Nov	$ 1,000.00	$ 75.00	10-Nov
30-Nov	$ 12,500.00	$ 1,500.00	15-Nov
		$ 1,500.00	15-Nov
		$ 8,500.00	20-Nov
		$ 480.00	20-Nov
		$ 300.00	22-Nov
	$ 4,000.00	$ 10,000.00	1-Dec
	$ 68.00	$ 420.00	5-Dec
	$ 153.00	$ 60.00	7-Dec
	$ 19,000.00	$ 75.00	10-Dec
		$ 7,000.00	11-Dec
		$ 5,000.00	13-Dec
		$ 1,500.00	15-Dec
		$ 456.00	20-Dec
		$ 122.00	20-Dec
		$ 151.25	30-Dec
	$ 85,521.00	$ 41,084.25
		$ 44,436.75

Trial Balance

		A Company
		Trial Balance
		20xx
	Unadjusted trial balance		Adjusting entries		Adjusted trial balance
Account	Debit	Credit	Debit	Credit	Debit	Credit
Cash	44,436.75 Biggs, Billy: Biggs, Billy: Make sure entries are correct and that they are posting to t accounts as expected.				44,436.75	- 0
Baking Supplies	20,500.00			19,400.00	1,100.00
Merchandise Inventory	176.25 Biggs, Billy: Biggs, Billy: Make sure entries are correct and that they are posting to t accounts as expected.				176.25	- 0
Prepaid Rent	1,500.00				1,500.00	- 0
Prepaid Insurance	1,200.00			200.00	1,000.00
Baking Equipment	5,000.00			208.33 Biggs, Billy: Biggs, Billy: See notes on adjusting entries tab.	4,791.67
Accumulated Depreciation						- 0
Office Supplies	600.00			550.00	50.00
Accounts Receivable	9,700.00				9,700.00	- 0
Notes Payable		10,000.00			- 0	10,000.00
Interest Payable				150.00		150.00
Accounts Payable	1,500.00 Biggs, Billy: Biggs, Billy: Make sure entries are correct and that they are posting to t accounts as expected.				1,500.00	- 0
Wages Payable		480.00			- 0	480.00
Common Stock		30,000.00			- 0	30,000.00
Dividends	10,000.00				10,000.00	- 0
Bakery Sales		60,000.00			- 0	60,000.00
Merchandise Sales		221.00			- 0	221.00
Baking Supplies Expense	- 0				- 0
Rent Expense	3,000.00 Biggs, Billy: Biggs, Billy: Make sure entries are correct and that they are posting to t accounts as expected.				3,000.00
Interest Expense			150.00		150.00
Insurance Expense			200.00		200.00
Depreciation Expense	- 0		208.33		208.33
Misc. Expense	250.00				250.00	- 0
Office Supplies Expense	- 0		550.00		550.00
Business License Expense	375.00				375.00	- 0
Advertising Expense	200.00				200.00	- 0
Wages Expense	1,956.00				1,956.00	- 0
Telephone Expense	150.00				150.00	- 0
COGS	157.00 Biggs, Billy: Biggs, Billy: Make sure entries are correct and that they are posting to t accounts as expected.		19,400.00 Biggs, Billy: Biggs, Billy: See notes on adjusting entries tab.	Biggs, Billy: Biggs, Billy: Make sure entries are correct and that they are posting to t accounts as expected.	Biggs, Billy: Biggs, Billy: Make sure entries are correct and that they are posting to t accounts as expected.	Biggs, Billy: Biggs, Billy: Make sure entries are correct and that they are posting to t accounts as expected.	Biggs, Billy: Biggs, Billy: See notes on adjusting entries tab.	Biggs, Billy: Biggs, Billy: See notes on adjusting entries tab.	Biggs, Billy: Biggs, Billy: See notes on adjusting entries tab.	19,557.00
Retained Earnings
Total:	100,701.00	100,701.00	20,508.33	20,508.33	100,851.00	100,851.00
			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	60,221.00
Cost of Goods Sold	19,557.00	<== Don't forget the COGS!
Gross Profit	40,664.00
Operating Expenses:
Rent Expense	3,000.00
Interest Expense	150.00
Misc. Expense	250.00
Office Supplies Expense	550.00
Business License Expense	375.00
Advertising Expense	200.00
Wages Expense	1,956.00
Telephone Expense	150.00
Depreciation Expense	208.33
Insurance Expense	200.00
Total Operating Expenses:	7,039.33
Net Income	33,624.67

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	30,000.00	33,624.67
Net Income		33,624.67
Dividends		(10,000.00)		Make sure your dividends are negative so the formula subtracts them
Ending Balances, December 31:	30,000.00	57,249.34	- 0

Balance Sheet

		A Company
		Balance Sheet
		As of December 31, 20XX
Assets				Liabilities and Owners' Equity
Current Assets:				Current Liabilities:
cash	44,436.75			Wages Payable	480.00
baking supplies	1,100.00			Interest Payable	150.00
Merchandise Inventory	176.25
Prepaid Rent	1,500.00			Total Current Liabilities	630.00
Accounts Receivable	9,700.00
Notes Payable	1,500.00
prepaid insurance	1,000.00
Office Supplies	50.00			Long Term Liabilities:
Total Current Assets	59,463.00			Total Long Term Liabilities:	10,000.00
				Total Liabilities:	10,630.00
				Shareholder's Equity:
				Common Stock	30,000.00
Non-Current Assets:				Retained Earnings	23,624.67
	Microsoft: show number as negative as the total formula will subtract it for you.	Accumulated Depreciation	(4,791.67) Microsoft: show number as negative as the total formula will subtract it for you.			Total Equity	53,624.67
Baking Equipment (Net)	(4,791.67)
Total Assets:	64,254.67			Total Liabilities & Equity	64,254.67	<== 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		60,000.00
	Merchandise Sales		221.00
	Retained Earnings
31-Dec	Retained Earnings
	Baking Supplies Expense	- 0
	Rent Expense	3,000.00
	Wages Expense	1,956.00
	Misc Expense	250.00
	Business License Expense	375.00
	Office Expense	550.00
	Depreciation Expense	208.33
	Insurance Expense	200.00
	Advertising Expense	200.00
	Interest Expense	150.00
	Telephone Expense	150.00
	COGS	19,557.00
31-Dec	Retained Earnings	33,624.67
	Dividends
		60,221.00	60,221.00

Post-Closing Trial Balance

A Company
Post-Closing Trial Balance
Qtr. Ending 12/31/20xx
	Unadjusted Trial Balance
Account	Debit	Credit
Cash	44,436.75			Note** These are the same accounts that are listed on the balance sheet
Baking Supplies	1,100.00
Merchandise Inventory	176.25
Prepaid Rent	1,500.00
Prepaid Insurance	1,000.00
Baking Equipment	5,000.00
Accumulated Depreciation	(208.33)		<== 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	50.00
Accounts Receivable	9,700.00
Accounts Payable	1500
Wages Payable		480.00
Interest Payable		150.00
Notes Payable		10,000.00
Common Stock		30,000.00
Retained Earnings		23,624.67
Total	64,254.67	64,254.67	<== Do the debits equal the credits? (they should)
			- 0