On Apr. 1, you, the business owner donated the following assets to Eat Your Life Away: cash, $20,000; accounts receivable, $14,700; food supplies, $3,300; and Kitchen Utensils, $12,000. There were no liabilities received. On the same day, you paid three months rent on a lease rental contract, $6,000. The following day, you paid the premiums on property and casualty insurance policies, $4,200.

On April 4, you received $9,400 cash from BTL who had contracted you to supply food for its 50 employees for the month of April. As a result of this BTL contract, you purchased on the following day additional restaurant office equipment on account from Angelus Press for $8,000.

On April 6, you received $11,700 cash from customers who were owing you from Stann Creek on account. Because of the competition in the City amongst restaurant owners, on April 10, you paid Amandala Newspapers $350 cash for a newspaper advertisement to announce your presence in the city. On April 12, having received the money from your debtors in Stann Creek, you decided to pay Angelus Press $6,400 for part of the debt incurred on April 5. On the same day, you provided food worth $21,900 to a major political party having a convention on account for the period April 112. Because of the bi-monthly payment agreement with your cook, you paid her salary for two weeks of $1,650.

On April 17, you received cash from cash customers for foods sold during the period April 116, $6,600 and you paid cash for food supplies, $725 the following day. Having established that the political party is trustworthy, you provided additional foods on account for another rally held at the Bliss Center for the period April 1320, $16,800.

On April 24, you received cash from cash customers for food sold for the period April 1724, $4,450. On April 26, you received cash from the political party who bought food on account, $26,500. Being another two-weeks period, you paid your cooks two weeks salary of $1,650 on April 27. You paid your telephone bill of $540 for the month of April on April 29 and BEL bill of $760 the following day.

On the last day of the month, you received cash of $5,160 from cash customers for food sold for the period April 2530, supplied food on account to BTL & Digicel staff on account for the remainder of April, $2,590. Because you had to pay for personal expenses, you withdrew $18,000 for personal use.

The Belize Income Tax Department wishes to conduct an audit of small businesses in Belize and Eat Your Life Away was selected as one of the businesses the Tax Department wishes to audit. Hence, it wants you to provide the following:

1. All the journal entries that you made during the month using a two-column journal and would

like you to use the following charts of accounts:

Cash

Drawing

Prepaid Rent

Food Supplies Expense

Accumulated Depreciation-Kitchen Utensils Accounts Payable

Insurance Expense

Miscellaneous Expense

Unearned Revenues

Accounts Receivable

Sales Revenue

Prepaid Insurance

Rent Expense

Depreciation Expense

Salaries Payable

Capital

Food Supplies

Salary Expense

Kitchen Utensils

2. Post the journal to a ledger accounts.

3. Prepare an unadjusted trial balance.

4. At the end of April, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6).

a. Insurance expired during April is $350.

b. Food Supplies on hand on April 30 are $1,225.

c. Depreciation of Kitchen Utensils for April is $400. d. Accrued Cook salary on April 30 is $275.

e. Rent expired during April is $2,000.

f. Unearned Revenue on April 30 are $2,350.

5. Journalize and post the adjusting entries in (4) above. Record the adjusting entries on the journal.

6. Prepare an adjusted trial balance.

7. Prepare an income statement, a statement of owners equity, and a balance sheet.

8. Provide a vertical analysis its description for your financial statements in question (7).

9. Provide 2 of each of the following:

a. Liquidity ratio

b. Solvency ratio

c. Profitability ratio

d. Investment Ratios

e. Management ratio