Run a bakery: journal entries, profit and the balance sheet
One business. Every connection.
Try the interactive lessonLet’s make it simple.
Follow one bakery from its owner’s investment to balanced statements. Every transaction changes accounts, and those accounts tell one connected story.
Picture this.
You invest $2,000 in your bakery. Cash and owner’s capital both start at $2,000. You will buy an oven and inventory, make a sale, then connect profit to the balance sheet. Assume no tax, debt or depreciation during this first day.
Check your understanding
The bakery earns $400, with $120 of goods sold and $100 rent. What is net profit?
Think it through, then reveal the explanation
$400 − $120 − $100 = $180 net profit.
Build the bigger picture.
- Record transactions
- Summarize account balances
- Calculate profit
- Prepare the balance sheet
The statements grow from the same set of accounts.
Now make it move.
Bring this idea to life with interactive practice, a 3D illustration and tips along the way. Your progress stays on your device.
Practice Your First Bakery