The Dinewell Restaurant Company has the following Trial Balance on December 31st at the end of its second year of business:

Year end adjustments to be made:

1. Rent was prepaid on December 1st for January, February and March. 2. Insurance had been prepaid for the entire year. 3. Furniture and equipment and estimated to have 5-year life. Use straight line depreciation. 4. Food Inventory on December 31st is 8800.

Prepare the restaurant's profit loss account and balance sheet.

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Account Debit (*) Credit (*) Cash 5200 Accounts Receivable 1600 Food Inventory (January 1st). 4200 Prepaid Rent 6000 Prepaid Insurance 4800 Furniture and Equipment Accounts payable 1,20,000 5800 Loan (Long Term) 80,000 Owner's Capital 50,000 Restaurant Revenue 49,000 Food Purchases 17,200 Wages 15,800 Laundry Expenses 4200 Supplies Expenses 3400 Other Expenses 2400