ACCT 201, Test 2Name ____________________ Due Monday, 2/9 100 Points DescriptionMr. Robie, a Pastry Chef extraordinaire, buys an existing bakery, The Flour Children Bakery. Mr. Robie renames the bakery, the “Black Cat Bakery”. Below please find the Chart of Accounts, and the first month’s transactions.Chart of Accounts.
Black Cat Bakery- JOURNAL to BALANCE SHEET PROJECT
ACCT 201, Test 2
Name: ____________________ Due: Monday, 2/9 100 Points Description:
Mr. Robie, a Pastry Chef extraordinaire, buys an existing bakery, The Flour Children Bakery. Mr. Robie renames the bakery, the “Black Cat Bakery”. Below please find the Chart of Accounts, and the first month's transactions.
Chart of Accounts Title Account Number Assets Cash 101 Supplies 103 Prepaid Rent 104 Prepaid Insurance 105 Bakery Equipment 115 Accumulated Depreciation, Bakery Equipment 116 Bakery Display & Furnishing 117 Store Equipment 118 Delivery Van 119 Accumulated Depreciation, Delivery Van 120 Liabilities Accounts Payable 211 Equity Common Stock 311 Dividends 312 Retained Earnings 313 Revenue Income from Bakery 411 Expenses Depreciation Expense, BE 501 Depreciation Expense, DV 502 Rent Expense 503 Insurance Expense 504 Wages Expense 511 Utilities Expense 512 Advertising Expense 513 Miscellaneous Expense 520 1 of 2First Month's Transactions Month Date Activity January 15 Mr. Robie deposited $150,000 as the Black Cat Bakery. 15 Bought the assets of The Flour Children Bakery for a total price of $60,000. The assets included: • Supplies = $5,000 • Bakery Equipment = $35,000 • Bakery display and furnishings = $20,000 15 Prepaid 1-1/2 months rent on, $1,500 x 1.5 = $ 15 Bought store equipment on account, $10,000 15 Purchased 2-1/2 months of insurance for $2,500 15 Bought store equipment on account, $10,000 15 Bought delivery van with cash, $50,000 20 Grand Opening Celebration: $3,700 • Advertising, $500 • Decorations, $200 (use Miscellaneous Expenses) • Food and Beverages, $3,000 (use Miscellaneous Expenses) 22 Deposited, $5,072 from Bakery Sales 29 Deposited, $8,212 from Bakery Sales 31 Paid monthly utility bill, $180 31 Wages paid for week of 1/17 – 1/30, $1,200 31 Paid $400 in dividends Adjustment information: • Truck Depreciation: ($50,000 – $5,000)/6 = $45,000/6 = $7,500/year = $625/month = $313 for ½ month. • Bakery Equipment: $35,000/5 = $7000/year = $583.33/month = $292 for ½ month • Insurance Expired = $2,500/2.5 = $1,000 for ½ month • Prepaid Rent = 2,250/1.5 = $1,500/month, $750 for ½ month of January Instructions: 1. Journalize the transactions for January. 2. Prepare a Trial Balance 3. Journalize the adjusting entries as of January 31 4. Prepare an Adjusted Trial Balance 5. Prepare Financial Statements: Income Statement, Statement of Retained Earnings, Balance Sheet 6. Prepare closing transactions, and produce a Post-Closing Trial Balance 2 of 2
