Answer questions from the 4 tabs on this spreadsheet

1. Stephanie Martinez opened a Latin Fusion restaurant downtown in a large southern city. She has asked you, her accountant, to complete The Accounting Formulas for some of her rst month's transactions. Complete the following Accounting Formulas. (Spreadsheet hint: If you need to record two transactions in one cell, use Alt Enter after the rst number to return to the next line within the same cell.) 2. Kassi Handover purchased a small cafe in a northern Texas town with $600,000 of her own money. Help her prepare her T accounts for her rst month of operations using the following information. 3. Adam Deeds purchased a small roadside motel in April with inheritance money he received from his wealthy aunt. Help him prepare his T accounts for his rst month of operations using the information provided. 4. Lisa and Laura are twins who own a seafood restaurant in a coastal town. Lisa likes to report her income statement using accrual accounting, and Laura likes to report her income statement using cash accounting. Given the following information, complete the spreadsheet for March using both accrual accounting for Lisa and cash accounting for Laura. The restaurant generated $45,000 in revenue, but only received $30,000. Cost of food sold was $14,000, but only 60% was paid to the supplier. Salaries and wages were $13,000, but only 50% was paid to employees. Utilities expense was $600 and all of it was paid. Maintenance expense was $200, but it had been prepaid in January for the quarter. Marketing expense was $450 and all of it was paid. Rent expense was $6,000 and all of it was paid. Chapter 2, Question 1 a. The restaurant started with a $1,200,000 check from its owner. Assets = Liabilities + Owners' Equity Revenue - Expenses b. The restaurant generated revenues of $5,000 on accounts receivable. Assets = Liabilities + Owners' Equity Revenue - Expenses c. The restaurant purchased a $400,000 building with $40,000 cash and a $360,000 mortgage. Assets = Liabilities + Owners' Equity Revenue - Expenses d. The restaurant paid $550 cash for the utilities bill. Assets = Chapter 2 Q1 Liabilities + Owners' Equity Revenue - Expenses Chapter 2, Question 2 a. Kassi invested $600,000 cash in the caf. Cash Owners' Equity b. Kassi purchased $3,500 in food all of which is to be paid next month (accounts payable). Food Inventory Accounts Payable c. Kassi generated $10,000 in revenue all received in cash. Cash Revenue d. Kassi paid her employees $3,600 this month with payroll checks (cash account). Cash Chapter 2 Q2 Salaries and Wages Chapter 2, Question 3 a. Adam invested $5,000,000 cash in the motel. Cash Owners' Equity b. Adam purchased a $50,000 point of sale (POS) system with $5,000 cash and $45,000 notes payable. Cash POS System Notes Payable c. Adam generated $75,000 in revenues with $52,000 cash and $23,000 accounts receivable. Cash Accounts Receivable d. Adam paid utilities of $750 in cash. Chapter 2 Q3 Cash Utilities Expense Revenues Chapter 2, Question 4 Lisa's Accrual Accounting Laura's Cash Accounting Revenue Expenses: Cost of Food Sold Salaries and Wages Utilities Maintenance Marketing Rent Net Profit or (Loss) a. Which accounting method, Lisa's accrual accounting or Laura's cash accounting, shows a higher net profit? b. Which accounting method shows the most accurate amount of money on hand to pay bills? c. Which accounting method most accurately shows the revenues generated regardless of when they were received? d. Which accounting method most accurately shows the expenses incurred regardless of when they were paid? e. Which accounting method most accurately shows actual cash inflows and outflows? f. Which accounting method shows the most accurate reflection of their restaurant's true profitability? Answers: a. b. c. d. e. f. Chapter 2 Q4