Financial Accounting Project Student Set This project is a review of the accounting cycle. The requirements are bolded at the beginning and through the text Please download and print this file and write your solution in spaces provided for each requirement. You will obtain maximum of 7 marks if your answers are correct, well-written, and easy to read, only accept your hand written solution, and not a print out of a word document, if two works are identical, both will get zero, because it's Impossible for two persons to do identical works unless one copies from the other DUE DATE for posting to Moodle-Nov 8 @ 11:59 pm Let us start list several transactions for a small restaurant in its first two months of work. You we required to outrale all the transactions, post to Taccount prepare trial balance, make adjustments, prepare adjusted trial balance, close temporary accounts, and prepare post closing trial balance. At the end, you are also required to prepare Income Statement. Statement of RE and Balance Sheet for the business. We assume that owners of the restaurant have registered the business as a corporation Requirement 11 Journalize the following transactions. Note: You do not need to consider any account for interest payable and wages payable, as those are being paid on schedule. Jan 1, 2019 Owners invested $120,000 in the business account lan 1 They purchased an active restaurant for $250,000 paid 550,000 down payment and the rest on a 10-year loan IN/PJ. They were scheduled for monthly payments of $3,500 from which $2,000 goes against the principal of the loan and $1,500 as interest. Payments are due end of each month. To make it easy, let assume that from $250,000 of the purchase cost, $150,000 is considered as equipment and $100,000 as furniture lan 2: They paid $3,000 for the rent of Jan Jan 2: They prepaid $4,800 for one year insurance lan 2: They purchased $40.000 equipment: $10,000 in cash and the rest on account (A/PI Jan 3: They nurchased $20,000 of inventory in cash lan 3: They purchased $2,000 supplies in cash Jan 8. They had total sales of $25,000 during the first week 80% of the sales was in cash and 20% on credit card (CC/R). Those sales cost them using $5,000 of the inventory Jan 10: They paid $2,000 of the A/ Jan 12: They purchased $4,000 inventory on account (A/P Jan 15. They had $30,000 sales in the second week; 70% in cash, 101 on customers account (A/R), and 20% on credit card (CC/R) Those sales cost them using $6,000 of the inventory Jan 15: They paid $10,000 for emplovees' wages Jan 16. They received $3,000 from credit card companies regarding the CC/R). lan 22. They had $30,000 sales in cash, 10% on customers account (NR), and 10% on credit card (CCR). Those sales cost them using $6,000 of the inventary Ian 24: They paid $4,000 of the A/P. Jan 25. They purchased 56,000 inventory on account Jan 29: They paid 57,000 wages. Jan 29: They received $2,000 from customers who were billed before lan 29. They received 54,000 from credit card companies lan 29. They had $25,000 sales: 70% in cash, 10% on customers account (A/R) and 20% on credit card (CC/RI. Those sales cost them using $5,000 of the inventory Jan 29. They paid $3,500 for their loan (N/e). Remember only $2,000 of payments goes against the principal of the loan Prepared by H Khayambashi Feb 1. They paid $3,000 for rent Feb 2: Distributed 530,000 dividends to the awners, Feb 3: They received $2,000 from credit card companies Feb 3: They purchased $25,000 inventory, 52.000 in cash and the rest on account Feb 7: They had $20.000 sales: 70in cash 10% on cistomers account, and 208 on cedit card (CCRI Those sales cost them uung $4,000 of the inventory Feb : They received a utility bill of $500 which was due in three weeks. Up) Feb 9 They received $3,000 from the customers who were billed before, Feb 10. Thery paid $3,000 for AIP Feb 14 They had $15,000 sales, 60% in cash, ON on customers account, and 20% on Credit Card (cc) Those sales cost them using $3,000 of the inventory Feb 14: They paid $6,000 for wages. Feb 15 Owners invested additional $50,000 in the business Feb 16. They purchased $3,000 inventory in cash Feb 23 They had sales of $20,000 $12,000 in cash and the test on customers' account. Those sales cost them using $4,000 of the inventory Feb 24 They paid $500 for the utility bit dated Feb 8 Feb 25 They paid $2,000 for A/P. Feb 29 They had $30,000 sales, 70% in cash, 10% on customers account (A/R), and 20% in credit card (CC/RI Those sales cost them using $6,000 of the inventory Feb 29. Distributed $20,000 dividents to owners. Feb 29: They paid $3,500 for their loan (Remember only $2,000 of payments goes against the principal of the loan. Feb 29. They purchased $2,000 supplies on account Requirement 2: Post from Journal to T-Accounts (make the T-accounts in scrap paper and do not submit them with your work) Requirement 3: Prepare a trial balance for the end of Feb, Requirement 4: Journalise the adjustments for the following cases: a. Two months of the insurance has expired. b. Only $500 of supplies are left. c. Equipment in the restaurant depreciated S500 per month, Furniture in restaurant depreciated $300 per month 1 . Requirement 5 Update those accounts that have been adjusted Requirement-6: Prepare an adjusted trial balance Requirement.7. Prepare Income Statement, RL Statement, and Balance Sheet Requirements: Journalire the desing of temporary accounts based on the recent adjusted trial balance. Then prepare a post-closing trial balance Note: You may need to use the following accounts Cash, Common Stocks, A/P A/R.CC/N/F, U/P, ACC-DEP Equment, ACC-DEP Furniture, Inventory Supplies, PP Insurance, Dividends, RE and the following expenses: Rent ExD, Supply Exp, Insurance Exp Interest-Exp, Wages Exp, CGS, Utility Exp, Dep-Exp Equipment, Deo-Exo Furniture. Feel free to add any account, if needed Please consider 15% tax in your income statement Prepared by W. hayanashi