Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

15 The Blue Ribbon Steakhouse uses a perpetual inventory system for food and beverages. Supplies inventory and expense accounts are separately maintained for the following

15 The Blue Ribbon Steakhouse uses a perpetual inventory system for food and beverages. Supplies inventory and expense accounts are separately maintained for the following types of supplies: Guest, Cleaning, Office, and Kitchen. Purchases of supplies are charged to either an inventory (asset) account or an expense account based on the destination of the supplies (storeroom or direct use). Journalize the following transactions on a two-column journal for the Blue Ribbon Steakhouse. 20X1 March 1: The sales report for the day presented the following information: Food $1,985.75 Beverage 425.00 Sales Tax 144.65 Cash received and bank credit cards 1,550.65 In-house credit cards 1,003.68 1.07 Cash shortage Cash shortages or overages are recorded to one account called Cash Short or Over. March 1: Issued check number 645 for $1,600 to Baker Realty in payment of the March rent. March 1: Purchased $900 of food provisions for the storeroom on open account from Daxell Supply. March 1: Purchased $250 of liquor on open account for the storeroom from Tri-State Distributors. March 1: Paid for newspaper advertising to run on March 15. Issued check number 646 for $350 to City News. March 2: The sales report for the day presented the following information: Food Beverage Sales Tax $1,856.50 395.00 135.09 Cash received and bank credit cards 1,495.84 In-house credit cards Cash overage 891.13 .38 March 2: Issued check number 647 for $1,500 to Capital Insurance for a one-year policy on contents of building. Term of the policy is March 8, 20X1, to March 8, 20X2. March 2: Paid for newspaper advertising to run on April 8. Issued check number 648 for $850 to City News. March 2: Issued check number 649 for $225 to Eastern Telephone for the period March 1 to March 31. March 2: Purchased (on open account) the following items from Kimble Supply, intended for the storerooms: Kitchen utensils, paper, twine, pots, and pans $980.00 Pens, pencils, cash register rolls, staplers, and pads 200.00 Matchbooks provided free to guests 150.00 Cleaning solvents and polish 175.00 March 2: Recorded the following issues reports from the storerooms: Issues from the storeroom to the kitchen $1,225 Issues from the storeroom to the bar 200 March 2: The cost of free employee meals is recorded in a Food Department Employee Meals Expense account and a Beverage Department Employee Meals Expense account for management information purposes. Recorded the food manager's report of free meals provided to employees for March 1 and 2, which provided the following information: Free meals to bar employees, at cost $15 Free meals to food department employees, at cost 40 Problem 16 The Sunshine Motel uses a perpetual inventory system for food and beverages. Inventory and expense accounts are separately maintained for the following types of supplies: Rooms, Restaurant, and Administrative Supplies. Purchases of supplies are charged to either an inventory (asset) account or an expense account based on the destination of the supplies (storeroom or direct use). Journalize the following transactions involving the Sunshine Motel on a two-column journal. 20X8 May 1: The sales report for the day presented the following information: Room Sales $5,210.00 Food Beverage 1,863.25 375.00 Sales Tax 372.41 Cash received and bank credit cards 2,125.83 In-house credit cards Cash overage May 2: May 2: May 2: 5,695.68 .85 Purchased $875 of food provisions for the storeroom on open account from Prince Supply. Purchased $315 of liquor for the storeroom on open account from Hodges Distributors. Paid for newspaper advertising which ran on March 9. Issued check number 864 for $350 to State Tribune. May 2: The sales report for the day presented the following information: Room Sales $4,968.50 Food 2,265.95 Beverage 575.00 Sales Tax 390.47 Cash received and bank credit cards 5,365.38 In-house credit cards. Cash shortage May 2: 2,834.09 .45 Issued check number 865 for $4,200 to Zenith Insurance for a one-year workers' compensation policy. Term of the policy is May 1, 20X8, to May 1, 20X9. May 2: Issued check number 866 for $625 to Central Telephone for the period May 1 to May 31. May 2: storerooms: Purchased (on open account) the following items from Kimble Supply, intended for the Amenities for room guests $750.00 Pens, pencils, and other office supplies 500.00 Kitchen utensils, paper, twine, pots, and pans 600.00 May 3: Recorded the following issues reports from the storerooms: Issues from the storeroom to the kitchen $1,500 Issues from the storeroom to the bar 300 May 3: The cost of free employee meals is recorded to separate departmental expense accounts. Recorded the food manager's report of free meals furnished to employees for May 1 and 2, which provided the following information: Free meals to rooms department employees, at cost $75 Free meals to food and bar department employees, at cost 50 Free meals to administrative and general department employees, at cost 25

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Analysis And Business Valuation Case Studies Using Excel

Authors: Dr Alessio Faccia

1st Edition

979-8863186412

More Books

Students also viewed these Accounting questions