Molly's Meal Delivery service has been in business for seven years. The Chart of Accounts is below.
Question:
Molly's Meal Delivery service has been in business for seven years. The Chart of Accounts is below. They provide "home-cooked" meals for corporate events as well as individual needs Molly's operates with a December 31, 20XX financial year-end.
| Chart of Accounts | |
|---|---|
| Assets | |
| 101 | Cash |
| 140 | Food Supplies |
| 145 | Kitchen Supplies |
| 150 | Prepaid Rent |
| 175 | Ovens |
| 175.1 | Accum. Depr. - Ovens |
| 176 | Kitchen Equipment |
| 176.1 | Accum. Depr. - Kitchen Equipment |
| Liabilities | |
| 201 | Accounts Payable |
| 210 | Wages Payable |
| Owner's Equity | |
| 301 | Molly Murphy, Capital |
| 302 | Molly Murphy, Drawing |
| Revenues | |
| 401 | Meal Delivery Revenue |
| Expenses | |
| 501 | Food Supply Expense |
| 511 | Wage Expense |
| 521 | Rent Expense |
| 531 | Kitchen Supply Expense |
| 541 | Phone Expense |
| 542 | Utilities Expense |
| 561 | Depr. Expense - Ovens |
| 562 | Depr. Expense - Kitchen Equipment |
The following transactions took place during November, 20XX
Molly invested cash in business, $20,000
Purchased (2) new ovens on account for $6,300. The ovens have estimated useful lives of 7 years. The ovens will be paid for in January, with no interest.
Molly paid rent for November and December, $3,000 total
Purchased food supplies from Sammy's Super Market on account, $2,000
Deposited meal delivery fees, $3,400
Paid wages to kitchen workers, $2,000
Purchased kitchen supplies with cash, $500
Deposited meal delivery fees, $3,000
Purchased food supplies from Sammy's Super Market on account, $2,500
Deposited meal delivery fees, $3,200
Paid wages to kitchen workers, $2,050
Deposited meal delivery fees, $3,050
Paid phone bill, $200
Paid utilities bill, $500
Molly Murphy withdrew cash for personal use, $3,000
Adjustment information for the end of November is provided below.
Food supplies remaining on hand, $2050. Beginning balance was $2100.
Kitchen supplies used during the month, $600. Beginning balance was $1200.
November rent was used.
Depreciation on the kitchen ovens for November, $75. All other ovens and kitchen equipment were fully depreciated earlier in the year.
Wages earned, but not yet paid at end of November, $950
Journalize the adjusting entries to the General Journal.
Expert Answer:
Answer Solution Income summary account Date Particulars Amount Date Particular Amount 30 Nov Meal delivery revenue 12650 30 Nov Wages 5000 30 Nov Phon... View the full answer
Accounting Information Systems
ISBN: 978-0133428537
13th edition
Authors: Marshall B. Romney, Paul J. Steinbart
