Peyton Approved Case Study

Peyton Approved is a premium dog treat bakery that offers only the best dog treats for dogs that suffer from allergies. Peyton Approved uses only all-natural and hypoallergenic ingredients. Peyton Approved has been a home-based business for a year with much success, and now has the opportunity to expand into a bakery location. The purpose of this memo is request funding for business expansion.
Overview of the Company's Accounting System
On Peyton Approved accounting, each yearly period is broken down into quarterly periods. Financial statements and documents are prepared at the end each quarter. Smaller quarterly periods make recording transactions simple and ensure that reporting documents will be omission-free. Peyton approved has chosen to follow the guidelines set by the GAAP and follows the Accrual Basis Accounting method. Transactions will be debited or credited to accounts payable and receivable. At the end of each period all temporary accounts will be adjusted and closed to the proper permanent account. All assets …show more content…
Frist, Peyton Approved has employed highly qualified employees that have received the proper training. Peyton Approved pays great salaries to ensure the best employees remain ethical and reliable (Nobles, T. L., Mattison, B. L., Matsumura, E. M. 2014). Secondly, job accountability has been established by clear assignment of responsibilities as well as maintaining a separation of duties. Third, Peyton Approved participates in internal audits as well as random external audits. The receipts of cash will be handled separately by employees that do not handle any type of accounting responsibility. These strategies have been selected in order to maintain full responsibility for all transactions. Management has also been assigned the task of making sure that these practices stay in full