Running Head: ACC 308 1
ACC 308: Final Project Notes to Financial Statements
Southern New Hampshire University
April 20,2022
The financial notes present a review of accounting practices relating to diverse areas such as
the management of depreciation, management of supplies, management of inventory and long-
ACC 308 2
term debt. The information that has been used is for the 2017 year ending financial statements
and proforma statements to make predictions of company expansion in 2018.
Managing Depreciation – The straight-line depreciation method is adopted by Peyton
Approved for computing property and equipment-related depreciation. Under this
method, the same depreciation amount of the cost of an asset is assigned to the
depreciation expense account for an asset’s useful life (Salehi et al., 2020). The
deprecation amount in the income statement stands at $ 677.86. Thus, there is a 56 %
increase over last year. The proforma statement has revealed a depreciation expense
balance worth $ 2142.86. This increase is due to the purchase of equipment worth
$15,000 for the new store.
Managing Supplies – The business uses high-quality baking materials. The price of the
supplies keeps on fluctuating. The market price of flour is steady, but any change can
impact Peyton Approved expenses. In 2017, the business incurred expenses worth $
