Financial Statements: Create financial statements using appropriate methods based on accepted accounting principles. Be sure to prepare these financial statements in the order listed, as there are important interdependencies among them.

1. Income Statement: Prepare the income statement using the adjusted trial balance.
2. Statement of Owners Equity: Prepare the statement of owners equity using the adjusted trial balance.
3. Balance Sheet: Prepare the balance sheet using the adjusted trial balance.
4. Closing Entries: Complete the Closing Entries tab of the company accounting workbook by closing all temporary income statement amounts to create closing entries.

Adjusting entries Debit Credit 19,400.00 200.00 December Adjusted TB Debit Credit 51,436.75 1,100.00 175.65 1,500.00 1,000.00 5,000.00 208.33 50.00 9,700.00 10,000.00 150.00 7,000.00 480.00 30,000.00 208.33 550.00 150.00 Peyton Approved December Unadjusted TB Account Names Debit Credit Cash 51,436.75 Baking Supplies 20,500.00 Merchandise Inventory (FIFO) 175.65 Prepaid Rent 1,500.00 Prepaid Insurance 1,200.00 Baking Equipment 5,000.00 Accumulated Depreciation Office Supplies 600.00 Accounts Receivable 9,700.00 Notes Payable 10,000.00 Interest Payable Accounts Payable 7,000.00 Wages Payable 480.00 Common Stock 30,000.00 Retained Earnings Dividends 10,000.00 Bakery Sales 60,000.00 Merchandise Sales 221.00 Baking Supplies expense Rent expense 4,500.00 Interest expense Insurance expense Depreciation expense Misc. expense 250.00 Office Supplies expense Business License expense 375.00 Advertising expense 200.00 Wages expense 1,956.00 Telephone expense 150.00 Cost of goods sold (FIFO) 157.60 Totals 107,701.00 107,701.00 19,400.00 150.00 200.00 208.33 10,000.00 60,000.00 221.00 19,400.00 4,500.00 150.00 200.00 208.33 250.00 550.00 375.00 200.00 1,956.00 150.00 157.60 108,059.33 108,059.33 550.00 20,508.33 20,508.33