Question

Account	Unadjusted trial balance(debit)	Unadjusted trial balance(credit	Adjusting entries(debit)	adjusting entries(credit)	adjusted trial balance(debit)	Adjusted trial balance(credit)
Cash	32,236.75				32,236.75
baking supplies	18,500				18,500
merchandise inventory(fifo)	175.65				175.65
prepaid rent	1500				1500
prepaid insurance	2400				2400
baking equipment	6000				6000
accumulated depreciation				208.33		208.33
office supplies	600				600
accounts receivable	7700				7700
notes payable		10,000				10,000
wages payable		480				480
common stock		16,000				16,000
dividends	10,000					10,000
bakery sales		55,000				55,000
merchandise sales		221				221
baking supplies expense
rent expense	4500
interest expense
insurance expense	2400
depreciation expense			208.33
misc. expense	250
misc. supplies expense
office supplies expense
business license expense	375
advertising expense
wages expense
telephone expense
cogs(fifo)
accounts payable		1500				1500
interest payable
total	89,101	83,201	208.33	208.33

Can someone help me to figure out? I tried to do it but it was not balance out. Here are the information:

Q: July 1: You take $10,000 from your personal savings account and buy common stock in Peyton Approved. July 1: Purchase $6,500 in baking supplies from vendor, on account. July 3: Your parents lend the company $10,000 cash in exchange for a two-year, 6% note payable. Interest and the principal are repayable at maturity. July 7: Enter into a lease agreement for bakery space. The agreement is for 1 year. The rent is $1,500 per month, and the last month’s rent payment of $1,500 is required at time of lease agreement. The payment was made in cash. Lease period is effective July 1, 2018, through June 30, 2019. July 10: Pay $375 to the county for a business license. July 11: Purchase a cash register for $250 (deemed to be not material enough to qualify as depreciable equipment—use misc. exp.). July 13: You have baking equipment, including an oven and mixer, which you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $6,000, and you transfer the equipment into the business in exchange for additional common stock. The equipment has a 5-year useful life. July 13: Pay $200 for business cards/flyers/posters/ads to use for advertising. July 14: Pay $300 for office supplies. July 15: Hire part-time helper to be paid $12 per hour. Pay periods are the 1st through the 15th and 16th through the end of the month, with paydays being the 20th for the first pay period and the 5th of the following month for the second pay period. (No entry is required on this date; it is here for informational purposes only.) July 30: Received telephone bill for July in amount of $75. Payment is due on August 10. July 31: Pay $2,400 for a 12-month insurance policy. Policy effective dates are August 1, 2018, through July 31, 2019. July 31: Accrue wages earned for employee for period of 16th through 31st of July (Wage calculations table provided below)July 31: Total July bakery sales were $15,000. $5,000 of these sales are on accounts receivable. Step Two Data (Click on the link to return to the prompt.) The following events occur in August, 2018: August 5: Paid employee for period ending 7/31. August 8: Receive payments from customers towards accounts receivable in amount of $3,800. August 10: Paid July telephone bill. August 15: Purchase additional baking supplies in amount of $5,000 from vendor, on account. August 15: Accrue wages earned for employee from period of 1st through 15th of August (Wage calculations table provided below). August 15: Pay rent on bakery space. August 18: Receive payments from customers towards accounts receivable in amount of $3,000. August 20: Paid $8,500 toward baking supplies vendor payable. August 20: Pay employee for period ending 8/15. August 22: $300 in office supplies purchased. August 31: Received telephone bill for August in amount of $75. Payment is due on September 10. August 31: Accrue wages earned for employee for period of August 16th through August 31st. August 31: August bakery sales total $20,000. $7,500 of this total is on accounts receivable. Step Three (Click on the link to return to the prompt.) Updated Scenario: Many customers have been asking for more hypoallergenic products, so in September you start carrying a line of hypoallergenic shampoos on a trial basis. The following information relates to the purchase and sales of the shampoo: • You use the perpetual inventory method. You are uncertain as to which valuation method to use—FIFO, LIFO, or weighted average, so you calculate inventory using all three and then decide which one you would like to choose. Data: The following events occur in September, 2018: September 1: Paid dividends to self in amount of $10,000. September 5: Pay employee for period ending 8/31. September 7: Purchase merchandise for resale. See “Inventory Valuation” tab for details. September 8: Receive payments from customers toward accounts receivable in amount of $4,000. September 10: Pay August telephone bill. September 11: Purchase baking supplies in amount of $7,000 from vendor on account. September 13: Paid on supplies vendor account in amount of $5,000. September 15: Accrue employee wages for period of September 1 through September 15. September 15: Pay rent on bakery space: $1,500. September 15: Record merchandise sales transaction. See “Inventory Valuation” tab for details. September 15: Record impact of sales transaction on COGS and the inventory asset. See “Inventory Valuation” tab for details. September 20: Pay employee for period ending 9/15. September 20: Purchase merchandise inventory for resale to customers. See “Inventory Valuation” tab for details. September 24: Record sales of merchandise to customers. See “Inventory Valuation” tab for details.September 24: Record impact of sales transaction on COGS and the inventory asset. See “Inventory Valuation” tab for details. September 30: Purchase merchandise inventory for resale to customers. See “Inventory Valuation” tab for details. September 30: Accrue employee wages for period of September 16th through September 30th September 30: Total September bakery sales are $20,000. $6,000 of these sales are on accounts receivable. On September 30, the following adjustments must be made: • [Note: This is a sample.] Depreciation of baking equipment transferred to company on 7/13. Assume a half 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 are $1,100. • Miscellaneous supplies on-hand as of September 30 are $50.             Month hours rate pay jul 31 10 12 120 15 aug 40 12 480 31 august 35 12 420 15 sept 38 12 456 30 sept 40 12 480       Inventory evaluation data   : (fifo)      7-Sep Merchandise Inventory (10 x $6)   60.00    Cash    60.00 Purchased inventory       15-Sep Cash (8 x $8.50)   68.00     Merchandise Sales Revenue    68.00 Record sale of inventory       15-Sep Cost of Goods Sold (8 X $6)   48.00     Merchandise Inventory    48.00 Record inventory reduction due to sale       20-Sep Merchandise Inventory (20 x $6.10)   122.00    Cash    122.00     24-Sep Cash (18 x 8.50)   153.00     Merchandise Sales Revenue    153.00 Record sale of inventory       24-Sep Cost of Goods Sold (18 x $6.10)   109.80     Merchandise Inventory    109.80 Record inventory reduction due to sale   30-Sep Merchandise Inventory (25 x $6.05)   151.25    Cash    151.25                      Data for Depreciation expense is $208.33 Can someone help to figure out the trial balance? Unadjusted trial balance, adjusting entries, and adjusted trial balance

Answer 1

Account	Unadjusted trial balance(debit)	Unadjusted trial balance(credit	Adjusting entries(debit)	adjusting entries(credit)	adjusted trial balance(debit)	Adjusted trial balance(credit)
Capital/Common stock		16000				16000
Cash	32236.75				32236.75
baking supplies stock	18500			17400	1100
merchandise inventory(fifo)	175.65				175.65
prepaid rent	1500				1500
prepaid insurance			2000		2000
baking equipment	6000				6000
accumulated depreciation				208.33		208.33
office supplies stock	600			550	50
accounts receivable	7700				7700
notes payable 6%		10000				10000
wages payable		480				480
common stock
dividends	10000				10000
bakery sales		55000				55000
merchandise sales		221				221
baking supplies consumed/expense			17400		17400
rent expense	4500				4500
interest expense			150		150
insurance expense	2400			2000	400
depreciation expense			208.33		208.33
misc. expense	250				250
misc. supplies expense
office supplies expense			550		550
business license expense	375				375
advertising expense	200				200
wages expense	1956				1956
telephone expense	150				150
merchandise cogs(fifo)	157.6				157.6
accounts payable		5000				5000
interest payable				150		150
total	86701	86701	20308.33	20308.33	87059.33	87059.33

Certain notes to help you out with calculations:

Prepaid insurance is for period of 10 months = 2400*10/12 = 2000

Baking supplies consumed = total baking purchases - closing stock = 18500-1100 = 17400

Interest is calculated for 3 months = =10000*0.06*3/12

office/misc supplies consumed = purchases - closing stock = 300+300-50 = 550

Accounts payable closing balance is calculated as follows = 6500+5000-8500+7000-5000 = 5000

Merchandise COGS =48+109.6 = 157.6