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Can't get this to adjust on the balance sheet. The teach said the balance sheet total assets should be: 173, 652. I'm only 175 off but the only 175 I see would be an expense.

Preliminary Financial Statements have already been prepared (2017 statements in the Final Project Workbook). Final adjusting entries have not yet been made. See table for possible adjustments that indicate what will be recorded at 12/31/17 (fiscal year end). Use the following to complete year-to-year documentation and notes for managing depreciation, inventory, and long-term debt.

1. A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped

2. At 12/31/17, Peyton has $200 worth of merchandise on consignment at Brunos House of Bacon.

3. On 12/23/17, Peyton received a $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January.

4. On 12/03/2017, a mixer with cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction.

5. Note about later borrowing financials will show loan from parents repaid and use of bank financing

		Unadjusted trial balance					Adjusting entries					Adjusted trial balance
		Dr		Cr		ref	Dr		Cr	ref		Dr		Cr
Cash		67,520.04					1,000.00					68,520.04
Accounts Receivable		68,519.91										68,519.91
Other Receivable - Insurance							700.00					700.00
Baking Supplies		15,506.70					3,000.00					18,506.70
Merchandise Inventory		1,238.07							200.00			1,038.07
Consignment Inventory							200.00					200.00
Prepaid Rent		2,114.55										2,114.55
Prepaid Insurance		2,114.55										2,114.55
Misc. Supplies		170.49										170.49
Baking Equipment		14,000.00							2,000.00			12,000.00
Accumulated Depreciation				1,606.44			1,200.00							406.44
Customer Deposit									1,000.00					1,000.00
Accounts Payable				20,262.11					3,175.00					23,437.11
Wages Payable				3,383.28										3,383.28
Interest Payable				211.46										211.46
Notes Payable				5,000.00										5,000.00
Common Stock				20,000.00										20,000.00
Beginning Retained earnings				50,144.84										50,144.84
Dividends		105,000.00										105,000.00
Bakery Sales				327,322.55										327,322.55
Merchandise Sales				1,205.64										1,205.64
Cost of Goods Sold - Baked		105,834.29										105,834.29
Cost of Goods Sold - Merchandise		859.77										859.77
Rent Expense		24,549.19										24,549.19
Wages Expense		10,670.72										10,670.72
Misc. Supplies Expense		3,000.46										3,000.46
Business License Expense		2,045.77										2,045.77
Misc. Expense		1,363.84					175.00					1,538.84
Depreciation Expense		677.86										677.86
Insurance Expense		1,091.08										1,091.08
Advertising Expense		1,549.74										1,549.74
Interest Expense		818.31										818.31
Telephone Expense		490.98										490.98
Gain/Loss on disposal of equipment							100.00
		429,136.32		429,136.32			6,375.00		6,375.00			432,011.32		432,111.32

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