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Mollys Meal Delivery Service Mollys Meal Delivery service has been in business for seven years. The Chart of Accounts is below: They provide home-cooked meals
| Mollys Meal Delivery Service | |||||||
| Mollys 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. | |||||||
| Mollys 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 | ||||||
| Owners 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 | |||||||
| 1 | Molly invested cash in business, $20,000. | ||||||
| 1 | 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. | ||||||
| 1 | Molly paid rent for November and December, $3,000 total. | ||||||
| 4 | Purchased food supplies from Sammys Super Market on account, $2,000. | ||||||
| 7 | Deposited meal delivery fees, $3,400 | ||||||
| 10 | Paid wages to kitchen workers, $2,000. | ||||||
| 11 | Purchased kitchen supplies with cash, $500. | ||||||
| 14 | Deposited meal delivery fees, $3,000. | ||||||
| 15 | Purchased food supplies from Sammys Super Market on account, $2,500. | ||||||
| 21 | Deposited meal delivery fees, $3,200. | ||||||
| 24 | Paid wages to kitchen workers, $2,050. | ||||||
| 28 | Deposited meal delivery fees, $3,050 | ||||||
| 30 | Paid phone bill, $200. | ||||||
| 30 | Paid utilities bill, $500. | ||||||
| 30 | Molly Murphy withdrew cash for personal use, $3,000. | ||||||
| Adjustment information for the end of November is provided below. | |||||||
| (a) | Food supplies remaining on hand, $2050. Beginning balance was $2100 | ||||||
| (b) | Kitchen supplies used during the month, $600. Beginning balance was $1200. | ||||||
| (c) | November rent was used. | ||||||
| (d) | Depreciation on the kitchen ovens for November, $75. All other ovens and kitchen equipment were fully depreciated earlier in the year. | ||||||
| (e) | Wages earned, but not yet paid at end of November, $950. | ||||||
| Required: | |||||||
| Excel sheets to be used in completing the problem are: General Journal, General Ledger, Worksheet, Financial Statements | |||||||
| 1 | Enter the November transactions in the General Journal. | ||||||
| 2 | Post the entries to the General Ledger. Beginning account balances are provided in the General Ledger. | ||||||
| 3 | Prepare the trial balance on the Worksheet. | ||||||
| 4 | Journalize the adjusting entries to the General Journal. | ||||||
| 5 | Complete the Worksheet. | ||||||
| 5 | Post the adjusting entries to the General Ledger. | ||||||
| 6 | Prepare the Income Statement | ||||||
| 7 | Prepare the Statement of Owners Equity | ||||||
| 8 | Prepare the Balance Sheet | ||||||
| 9 | Journalize the closing entries to the General Journal. | ||||||
| 10 | Posting the closing entries to the General Ledger. | ||||||
| 11 | Prepare a Post-Closing Trial Balance. | ||||||
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
10th edition
978-1260481952
