A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped FOB supplier’s warehouse.

At 12/31/17, Peyton has $200 worth of merchandise on consignment at Bruno’s House of Bacon.

On 12/23/17, Peyton received $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January.

On 12/03/2017, a mixer with a cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction.

About later borrowing - financials will show loan from parents repaid and use of bank financing.

And this is my adjusted trial balance with adjusting entries.

		Unadjusted trial balance					Adjusting entries					Adjusted trial balance
		Dr		Cr		ref	Dr		Cr	ref		Dr		Cr
Cash		67,520.04					1,000.00			3		68,520.04
Accounts Receivable		68,519.91										68,519.91
Other Receivable - Insurance							700.00			4		700.00
Baking Supplies		15,506.70					3,000.00			1		18,506.70
Merchandise Inventory		1,238.07							200.00	2		1,038.07
Consignment Inventory							200.00			2		200.00
Prepaid Rent		2,114.55										2,114.55
Prepaid Insurance		2,114.55							494.83			1,619.72
Misc. Supplies		170.49										170.49
Baking Equipment		14,000.00							2,000.00	4		12,000.00
Accumulated Depreciation				1,606.44			1,200.00			4				406.44
Customer Deposit									1,000.00	3				1,000.00
Accounts Payable				20,262.11					3,175.00	1				23,437.11
Wages Payable				3,383.28										3,383.28
Interest Payable				211.46										211.46
Notes Payable				5,000.00										5,000.00
Common Stock				20,000.00										20,000.00
Beginning Retained earnings				50,144.84										50,144.84
Dividends		105,000.00										105,000.00
Bakery Sales				327,322.55										327,322.55
Merchandise Sales				1,205.64										1,205.64
Cost of Goods Sold - Baked		105,834.29										105,834.29
Cost of Goods Sold - Merchandise		859.77										859.77
Rent Expense		24,549.19										&

Answer rating: 100% (QA)

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