APPLY YOUR KNOWLEDGE Serial Case c2-72 (Learning Objectives 2, 4: Journalize transactions; analyze their impact on theLO 2.4 accounting equation) Note: This mini-case is part of The Cheesecake Factory serial case contained in every chapter in this textbook. The Cheesecake Factory Incorporated (NASDAQ: CAKE) owns and operates over 200 restaurants, including The Cheesecake Factory, the Grad Lux Cafe, and the RockSugar Pan Asian Kitchen brand restaurants. It also operates two bakery production facilities. Millions of transactions occur at The Cheesecake Factory Incorporated each year. The following items are examples of hypothetical Cheesecake Factory transactions: February I: Received S15,000 in daily restaurant sales revenue, cash (ignore cost of sales entry) February 2: Purchased sugar (inventory), $11,000, on account February 8: Paid for February advertising in local newspapers, $2,000, cash February 11: Paid employees, $75,000, cash, for the one-week pay period ending February 10 February 12: Borrowed money from bank by signing a six-month note payable, $80,000 February 15: Received and paid the electricity bill for administrative offices, $1,500 February 19: Paid $11,000 on account for the purchase of sugar on February 2 February 20: Sold Cheesecake Factory gift cards, $1,000, cash February 27: Paid February rent for restaurant building, $3,500, cash Requirements 1. What would be the journal entry for each of the listed transactions? 2. For each listed transaction, how would Cheesecake Factory's assets, liabilities, and equity be impacted? Decision Cases C2-73. (Learning Objectives 3, 5: Analyze the impact of transactions on business accounts; construct a trial balance) A friend named Lance Barton has asked what effect certain trans- actions will have on his company, Blast Networks, Inc. Time is short, so you cannot apply the detailed procedures of journalizing and posting. Instead, you must analyze the transactions without the use of a journal. Barton will continue the business only if he can expect to earn monthly net income of at least $5,000. The following transactions occurred this month: a. Barton deposited $7,000 cash in a business bank account, and the corporation issued common stock to him. b. Borrowed $6,000 cash from the bank and signed a note payable due within 1 year. c. Paid $1,300 cash for supplies. d. Purchased advertising in the local newspaper for cash, $1,800. e. Purchased office furniture on account, $5,400. f. Paid the following cash expenses for one month: employee salary-$2,000: office rent-$1,200. g. Earned revenue on account, $8,000 h. Earned revenue and received $2,500 cash. i. Collected cash from customers on account, $1,200. j. Paid on account, $1,000. Requirements 1. Set up the following T-accounts: Cash, Accounts Receivable, Supplies, Furniture, Accounts Payable, Notes Payable, Common Stock, Service Revenue, Salary Expense, Advertising Expense, and Rent Expense