Study the restaurant transactions for the month of March 2006 shown in the following list (a to i). Record the necessary journal entries, skipping a line between each entry. Journal entries and modified T ledger accounts can be prepared easily in MS Word by following the examples provided in your textbook. Please use the table feature in MS Word or any other word processing files and upload your completed response in Blackboard. To further simplify the problem, use the following account titles shown by category to prepare modified T accounts:
Balance Sheet Accounts:
Assets: Cash, Credit Card Receivable, Accounts Receivable, Food Inventory, Beverage Inventory, Prepaid Rent, Prepaid Insurance, Supplies, Equipment, and Furnishings
Liabilities: Accounts Payable, Note Payable
Ownership Equity: Capital
Income Statement Accounts: Sales Revenue, Salaries Expense, Wage Expense, and Interest Expense
a. Owner opened a business account and deposited $60,000 in the bank. (Answer is provided as a sample b. Owner paid one year of rent in advance, $18,000 cash.
c. The owner purchased equipment $46,000; $16,000 cash and the balance on account.
d. Owner purchased $3,200 of food inventory on account and paid $3,800 cash for beverage inventory.
e. Owner purchased supplies for $2,650 cash.
f. Owner purchased $3,800 of food inventory on account.
g. Employees were paid wages $12,800 and salaries $2,400.
h. Sales revenue first month was $42,800: 90% cash, 8% on credit cards, and 2% on accounts receivable.
i. Owner paid $8,000 on note payable, plus interest of $960.