Case 1. (30 points)

Prepare a record for each of the following transactions that occurred in January 2021 for a San Francisco restaurant: (10 points)

1. Mr T. Francis commenced business by investing $30,000 cash in the

restaurant.

2. Purchased on credit food stock for $4,000, and beverage stock for $6,000.

3. Purchased furniture and equipment for $20,000, paying $12,000 cash and owing the balance.

4. The bank extended a loan of $20,000 to the business.

5. Made sales of $40,000 during the month 75% of this was cash sales, the remainder was on credit.

6. Purchased $9,000 of perishable food items (food purchase expense) on credit. All the food is entirely consumed during the month.

7. Paid $2,000 cash for beverages (beverage purchase expense). All the beverages are entirely consumed during the month.

8. Paid $12,000 to trade creditors.

1. Repaid $2,000 of the bank loan plus interest of $100.

10. Paid $10,800 of wages.

11. Paid $4,000 for miscellaneous supply items. The business has a policy of expensing these items on purchase.

12. On the last day of the month, paid $1,500 rent for January.

Once the transactions have been recorded, prepare:

• a profit and loss statement for January 2021. (10 points)

• a balance sheet as at 31 January 2021. (10 points)