Question
Molly's Meal Delivery service has been in business for seven years. The Chart of Accounts is below. They provide home-cooked meals for corporate events as
Molly's Meal Delivery service has been in business for seven years. The Chart of Accounts is below. They provide "home-cooked" meals for corporate events as well as individual needs Molly's operates with a December 31, 20XX financial year-end.
Chart of Accounts | |
---|---|
Assets | |
101 | Cash |
140 | Food Supplies |
145 | Kitchen Supplies |
150 | Prepaid Rent |
175 | Ovens |
175.1 | Accum. Depr. - Ovens |
176 | Kitchen Equipment |
176.1 | Accum. Depr. - Kitchen Equipment |
Liabilities | |
201 | Accounts Payable |
210 | Wages Payable |
Owner's Equity | |
301 | Molly Murphy, Capital |
302 | Molly Murphy, Drawing |
Revenues | |
401 | Meal Delivery Revenue |
Expenses | |
501 | Food Supply Expense |
511 | Wage Expense |
521 | Rent Expense |
531 | Kitchen Supply Expense |
541 | Phone Expense |
542 | Utilities Expense |
561 | Depr. Expense - Ovens |
562 | Depr. Expense - Kitchen Equipment |
The following transactions took place during November, 20XX
Molly invested cash in business, $20,000
Purchased (2) new ovens on account for $6,300. The ovens have estimated useful lives of 7 years. The ovens will be paid for in January, with no interest.
Molly paid rent for November and December, $3,000 total
Purchased food supplies from Sammy's Super Market on account, $2,000
Deposited meal delivery fees, $3,400
Paid wages to kitchen workers, $2,000
Purchased kitchen supplies with cash, $500
Deposited meal delivery fees, $3,000
Purchased food supplies from Sammy's Super Market on account, $2,500
Deposited meal delivery fees, $3,200
Paid wages to kitchen workers, $2,050
Deposited meal delivery fees, $3,050
Paid phone bill, $200
Paid utilities bill, $500
Molly Murphy withdrew cash for personal use, $3,000
Adjustment information for the end of November is provided below.
Food supplies remaining on hand, $2050. Beginning balance was $2100.
Kitchen supplies used during the month, $600. Beginning balance was $1200.
November rent was used.
Depreciation on the kitchen ovens for November, $75. All other ovens and kitchen equipment were fully depreciated earlier in the year.
Wages earned, but not yet paid at end of November, $950
Journalize the adjusting entries to the General Journal.
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Answer Solution Income summary account Date Particulars Amount Date Particular Amount 30 Nov Meal delivery revenue 12650 30 Nov Wages 5000 30 Nov Phon...Get Instant Access to Expert-Tailored Solutions
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