Step 6:

You will use the Adjusting Entries tab in your workbook to complete the following entries. See sample for Depreciation of Baking Equipment. Take the adjusting entries from this worksheet and enter them into the trial balance on the Steps 5 and 7 Trial Balance tab.

On September 30, the following adjustments must be made:

Depreciation of baking equipment transferred to company on 7/13. Assume month of depreciation in July using the straight-line method.

Accrue interest for note payable. Assume a full month of interest for July. (6% annual interest on $10,000 loan from parents.

Record insurance used for the year.

Actual baking supplies on-hand as of September 30^th is $1100.

Misc. supplies on-hand as of September 30th is $50.

date+A2:J5	Cash		date		date	Notes Payable		date		Business License exp				Common Stock
1-Jul	15,000.00								10-Jul	375			1-Jul		15,000
3-Jul	10,000.00												13-Jul		5,000
7-Jul		3,000.00
10-Jul		375.00					0			375					20,000
11-Jul	275.00
13-Jul	200.00
14-Jul		300.00
31-Jul		1,200.00
8-Aug	3,200.00
10-Aug		45.00
15-Aug		1,500.00
20-Aug		8,500.00
20-Aug		420.00
22-Aug		300.00
31-Aug	12,500.00					Accounts Rec.				Insurance expense
1-Sep		3,000.00			3-Jul		10,000
7-Sep		60.00			30-Jul	45
8-Sep	4,000.00				8-Aug		3,200
10-Sep		45.00			18-Aug		1,000
13-Sep	5,000.00				31-Aug		45						COMPLETION OF STEPS 1- 4 DELIVERABLE:
15-Sep		1,500.00			31-Aug	7,500							CONGRATULATIONS! YOU ARE NOW READY TO SUBMIT YOUR
30-Sep	19,000.00				8-Sep		4,000						WORKBOOK TO COMPLETE THE 3-3 CHECKPOINT REQUIREMENT
						-10700				0
	69,175.00	20,245.00
	48,930.00
	Misc. expense					Baking equipment					Advertising expense
11-Jul		275			13-Jul	5,000				13-Jul		200
											0
						5,000
	0
	Baking supplies					Misc. supplies					Rent expense
1-Jul	8,500				14-Jul	300				7-Jul	3,000
15-Aug	5000				22-Aug	300				15-Aug	1500
11-Sep	7000									15-Sep	1500
	20,500					600
											6,000
	Prepaid rent					Prepaid insurance					Bakery Sales
					31-Jul	1,200
						1,200
												0
	-
	Accounts payable					Salary and wages expense					Salaries and wages payable
1-Jul		8500			31-Jul		120			31-Jul	120
15-Aug		5,000			20-Aug	420				5-Aug		120
20-Aug	8,500									15-Aug		480
11-Sep		7,000
13-Sep		5,000
		17,000
	Telephone expense
30-Jul		45				420
10-Aug	45											480
31-Aug	45
10-Sep	45					Dividends					depreciation expense				acc dep
					1-Sep	3,000
	135
						3,000
											0					0
	baking supplies expense										Interest expense				Interest payable
adj										adj							adj
	0										0					0
	misc supplies expense					COGS LIF0					COGS FIFO
adj
	0
	Merchandise Sales Revenue					-					-