June 30, 20X1

Oilmaggedon was another success for Rhy's Fries but not without some significant challenges. The event showcased Ronald's popular product as he was able to bring in $23,625 (including GST of $1,125) in cash receipts but it could have been higher. He sold 3,750 servings of food but underestimated how far his inventory would go and ran out of potatoes part way through the last day. He also needed to hire a temporary helper to handle the demanding prep work. The assistant worked 3 hours a day at $15/hour for each of the 5 days. The employee was hired through a local hiring agency and the total wages for the employee are due to the hiring agency 10 days after the end of the event. He had 5 pails of oil left and $25 worth of amenities at the end of the 5^th day.

The biggest challenge was with his food truck however. Being unfamiliar with the equipment proved to be a costly error. After the first day Ronald left some of his equipment running overnight causing it to overheat and breakdown. The mistake not only cost him a few hours of precious selling time but resulted in $1,000 worth of repairs. He paid for the repairs using the cash generated from the first day of the sales.

Since he had no product left to sell for part of the last day, he took some time to check out the other vendors. He noticed a several things during his wandering. One was that his selling price seemed to be lower than many other competitors and also most vendors offered several different products and product variations rather than just the single option offered at Rhy's Fries. He wondered if it would have perhaps been more profitable to sell fewer items but at a higher price.

Having now rested and recovered, Ronald took the cash generated from the event and repaid the bank operating loan, the loan from Bob and made the first of 4 monthly payments on the balance owing on his food truck loan.

1.)make any journal entries required up to June 30, 20X1 including any adjusting entries needed. (Assume a full month of insurance, interest, and depreciation for the food truck)