HAPPY HOUSE BAKESHOP’S ACCOUNT ENTRIES

1. General Journal (October transactions):

Date | Account | Debit | Credit

Oct 1 | Cash | | $20,000

Oct 1 | Common Stock | $20,000 |

Oct 1 | Delivery Van | $11,000 |

Oct 1 | Notes Payable (Long-term) | $7,000 |

Oct 3 | Baking Supplies | $900 |

Oct 5 | Prepaid Insurance | $1,800 |

Oct 5 | Cash | | $1,800

Oct 12 | Accounts Receivable | $4,800 |

Oct 12 | Baking Revenue | | $4,800

Oct 18 | Delivery Van | | $1,500

Oct 18 | Accounts Payable | $500 |

Oct 20 | Salaries Expense | $1,700 |

Oct 20 | Cash | | $1,700

Oct 21 | Cash | | $1,200

Oct 21 | Accounts Receivable | $1,200 |

Oct 25 | Accounts Receivable | $1,900 |

Oct 25 | Baking Revenue | | $1,900

Oct 31 | Gas and Oil Expense | $500 |

Oct 31 | Cash | | $500

Oct 31 | Dividends | $800 |

Oct 31 | Retained Earnings | | $800

2. General Journal (Adjusted transactions):

Date | Account | Debit | Credit

Oct 31 | Accounts Receivable | $2,500 |

Oct 31 | Baking Revenue | | $2,500

Oct 31 | Depreciation Expense | $500 |

Oct 31 | Accumulated Depreciation | | $500

Oct 31 | Insurance Expense | $150 |

Oct 31 | Prepaid Insurance | | $150

Oct 31 | Supplies Expense | $200 |

Oct 31 | Cleaning Supplies | | $200

Oct 31 | Salaries Expense | $500 |

Oct 31 | Accrued Salaries Payable | | $500

3. General Ledger (T-accounts):

Cash:

Date | Description | Debit | Credit

Oct 1 | Common Stock | | $20,000

Oct 5 | Prepaid Insurance | $1,800 |

Oct 20 | Salaries Expense | $1,700 |

Oct 21 | Accounts Receivable | $1,200 |

Oct 31 | Dividends | $800 |

Oct 31 | Baking Revenue | | $3,700

Oct 31 | Gas and Oil Expense | $500 |

Oct 31 | Accounts Receivable | | $2,500

Oct 31 | Accrued Salaries Payable | | $500

Oct 31 | Insurance Expense | $150 |

Oct 31 | Supplies Expense | $200 |

Oct 31 | Cleaning Supplies | | $200

 | $4,200 | $28,700

Common Stock:

Date | Description | Debit | Credit

Oct 1 | Cash | | $20,000

Delivery Van:

Date | Description | Debit | Credit

Oct 1 | Cash | $4,000 |

Oct 1 | Notes Payable | $7,000 |

Oct 18 | Accounts Payable | | $1,500

Oct 31 | Accumulated Depreciation | $500 |

Notes Payable (Long-term):

Date | Description | Debit | Credit

Oct 1 | Delivery Van | | $7,000

Baking Supplies:

Date | Description | Debit | Credit

Oct 3 | Accounts Payable | $900 |

Prepaid Insurance:

Date | Description | Debit | Credit

Oct 5 | Cash | | $1,800

Oct 31 | Insurance Expense | $150 |

Accounts Receivable:
Date | Description | Debit | Credit

Oct 12 | Baking Revenue | $4,800 |

Oct 21 | Cash | | $1,200

Oct 25 | Baking Revenue | $1,900 |

Oct 31 | Baking Revenue | $2,500 |

Salaries Expense:

Date | Description | Debit | Credit

Oct 20 | Cash | $1,700 |

Oct 31 | Accrued Salaries Payable | | $500

Dividends:

Date | Description | Debit | Credit

Oct 31 | Cash | $800 |

Retained Earnings:

Date | Description | Debit | Credit

Oct 31 | Dividends | | $800

Depreciation Expense:

Date | Description | Debit | Credit

Oct 31 | Accumulated Depreciation | | $500

Insurance Expense:

Date | Description | Debit | Credit

Oct 31 | Prepaid Insurance | | $150

Supplies Expense:
Date | Description | Debit | Credit

Oct 31 | Cleaning Supplies | $200 |

Cleaning Supplies:

Date | Description | Debit | Credit

Oct 31 | Supplies Expense | | $200

Accrued Salaries Payable:

Date | Description | Debit | Credit

Oct 31 | Salaries Expense | | $500

4. Unadjusted Trial Balance:

Account | Debit | Credit

Cash | $28,700 |

Common Stock | $20,000 |

Delivery Van | $11,000 |

Notes Payable (Long-term) | $7,000 |

Baking Supplies | $900 |

Prepaid Insurance | $1,650 |

Accounts Receivable | $8,900 |

Salaries Expense | $1,700 |

Dividends | $800 |

Retained Earnings | | $800

Accumulated Depreciation | | $500

Insurance Expense | | $150

Supplies Expense | | $200

Cleaning Supplies
 5. Adjusted Trial Balance:

Account | Debit | Credit

Cash | $28,700 |

Common Stock | $20,000 |

Delivery Van | $11,000 |

Notes Payable (Long-term) | $7,000 |

Baking Supplies | $900 |

Prepaid Insurance | $1,650 |

Accounts Receivable | $11,400 |

Salaries Expense | $2,200 |

Dividends | $800 |

Retained Earnings | | $800

Accumulated Depreciation | | $500

Insurance Expense | | $150

Supplies Expense | | $200

Cleaning Supplies | | $300

Accrued Salaries Payable | | $500

Baking Revenue | $9,200 |

Depreciation Expense | $500 |

Insurance Expense | $150 |

Supplies Expense | $200 |

Total | $66,000 | $66,000

Experience with completing the assignment:

Completing the assignment with journal entries and the Trial Balance was a comprehensive exercise in
recording and analyzing various financial transactions. It required a careful understanding of the
accounting principles and the ability to apply them accurately. The process involved identifying the
accounts affected by each transaction, determining the appropriate debit and credit entries, and
ensuring the entries balanced.

Posting the transactions to the general journal helped organize and chronologically record the events.
Analyzing and adjusting the entries allowed for accurate financial reporting by considering accrued
revenues and expenses, depreciation, and other adjustments.

The Trial Balance served as a useful tool to ensure that the total debits equaled the total credits. It
helped identify any errors in the recording of transactions or adjustments. By comparing the unadjusted
and adjusted trial balances, we were able to observe the impact of adjustments on the financial
statements.

Overall, completing this assignment enhanced my understanding of journal entries, adjusting entries,
and the importance of maintaining the balance in the accounting equation. It highlighted the
significance of accurate and timely financial reporting for businesses.

From Unit 2, I have learned several key concepts in accounting, including:

-The fundamental accounting equation (Assets = Liabilities + Equity) and its significance in double-entry
bookkeeping.

- The different types of accounts (assets, liabilities, equity, revenues, and expenses) and their
classifications.

- How to record transactions using journal entries, including identifying the accounts affected and
applying debits and credits appropriately.

- The purpose and process of posting journal entries to the general ledger.

- The construction and significance of the Trial Balance, which ensures the equality of debits and credits.

- The concept of adjusting entries and their role in reflecting accruals, deferrals, and other adjustments
at the end of an accounting period.

- The impact of adjusting entries on the financial statements and how they contribute to more accurate
and informative financial reporting.

In summary, these learnings have provided a solid foundation for understanding the basics of
accounting and financial statement preparation. They are essential for maintaining accurate records and
analyzing the financial health of a business.

Reference
Franklin, M. Graybeal, P. & Cooper, D. (2020). Principles of accounting, volume 1: Financial accounting.
Open Stax Rice University.