ACC-308 Notes to the Financial Statements

Notes to the Financial Statement by Corey Somervold 1 Notes to the Financial Statements Peyton Approved June 5, 2021 Note 1 Nature of the Business Domicile and Legal Form of the Reporting Entity Peyton Approved is a corporation that is based out of South Dakota. The address for this registered office is 9457 Cricket Dr, Rapid City, SD 57701. Description of Business Peyton Approved is a leading company in the healthier baked goods industry that strives on providing a healthier alternative for all their customers. The company provides these options to customers that are all over the US. Note 2 Summaries of Significant Accounting Policies Use of Estimates in the Preparation of Financial Statements The GAAP requires that a Peyton Approved make estimates when completing some of the financial statements. These statements will be affected by actual events that may change the results of the statements. Revenue Recognition Peyton Approved makes most of their revenue from the creation and sale of baked goods and merchandise. Receivables The companies account receivable is made up of amounts that are due from sale. The account receivable for this company at the end of December 31, 2017, totaled $68,519.91. Note 3 Property, Plant, and Equipment
Notes to the Financial Statement by Corey Somervold 2 The company records the cost of the property, plant, and equipment at cost value. The depreciation method that is used is the straight-line method. The amount of accumulated depreciation that the company had at the end of December 31, 2017, was $406.44. Note 4 Inventory The inventory that the company has consist of baking supplies and merchandise. The inventory is taken periodic to keep track of the amount they have on hand. Both the baking supplies and merchandise use the last in first out method when tracking inventory. The company had $18,681.70 in baking supplies and $1,038.07 in merchandise inventory at the end of the 2017 year. Note 5 Current Liabilities Accounts Payable The companies account payable is the amount that the company is liable for owed to suppliers. This is supplies purchased on credit. Wages Payable The wages that are stilled owed to employees of the prior pay period. Note 6 Long-Term Liabilities Notes Payable The company has a note payable that has a 6% interest rate. This note started on Jan. 31, 2017 and is due in Feb. 1, 2019. Loans The company has a 5-year loan out, that was made on June 1, 2016. The terms on this loan are that it has a 7.5% annual rate, and the interest is only until the due date. Insurance
Notes to the Financial Statement by Corey Somervold 3 The company has an annual insurance policy that covers for 12 months. This was purchased in February; this policy was renewed every year. The company is covered for the months March 2017throuhg February 2018. There have been no monthly adjustments made for this.
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