A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well
Question:
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 | | | | | | | | | | & |
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen