Overview: In this milestone, you will move through the first four steps of Final Project I by creating the monthly journal entries and general ledger...

Overview: In this milestone, you will move through the first four steps of Final Project I by creating the monthly journal entries and general ledger accounts in your accounting workbook. The monthly journal entries are how businesses input financial activities into their accounting systems. The values from these entries are posted to the general ledger.  

Prompt: Your dog, Peyton, has severe allergies and cannot have the usual store-bought dog treats. You have been making homemade treats for him that are allnatural and hypoallergenic. Over the past year, you have been making and selling these treats out of your home, and you have been quite successful. You now have an opportunity to open your own dog treat bakery. You have decided on a corporate form of business and have named your company "Peyton Approved."  

To complete Milestone One, use accepted accounting principles to follow and record your business transactions for a three-month period. You will find the provided data for your workbook in the appendix at the end of this document. The data have been separated from the prompt so that you can more easily view the full scope of the assignment. Links have been provided to help you locate the information you need as you move through each step.  

Specifically, the following critical elements must be addressed:  

I. Record financial data that accurately captures business transactions according to accepted accounting principles.

A. Step One: Complete the "July Journal Entries" tab in your workbook using the Step One data in the appendix.

B. Step Two: Complete the "August Journal Entries" tab in your workbook using the Step Two data in the appendix.

C. Step Three: Complete the "September Journal Entries" tab in your workbook using the Step Three data and updated scenario information in the appendix. Note that there was an additional line of products added this month, so you must first complete the "Inventory Valuation" tab in your workbook and then copy the journal entries from the inventory evaluation page into your journal for this month to ensure the impact of merchandising is reflected in your reporting.  

The following critical element is not graded:  

D. Step Four: Transfer posted entries to T accounts

Appendix: Workbook Data for Milestone One  

Step One Data  

The following events occur in July, 2018:  

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

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 (Wage calculations table provided below).  

August 31: August bakery sales total $20,000. $7,500 of this total is on accounts receivable.  

Just do step 2