P1.1 Study the restaurant transactions for the month of March 2004 shown be- low, and record the necessary journal entries, skipping a line between each entry. Journal entries and modified T ledger accounts can be prepared eas- ily on lined paper following the examples shown in the text. To further simplify the problem, use the following account titles shown by category to prepare modified T accounts. Balance sheet accounts, Assets: Cash, Credit Cards Receivable, Accounts Receivable, Food Inventory, Beverage Inventory, Prepaid Rent, Prepaid Insurance, Supplies, Equipment, and Fur- nishings. Liabilities: Accounts Payable, Note Payable. Ownership Equity: Capital. Income Statement Accounts: Sales Revenue, Salaries Expense, Wages Expense, and Interest Expense. a. Owner opened a business account and deposited $65,000 in the bank. b. Owner borrowed and deposited $20,000 on a note payable to the bank. C. Owner paid one year of rent in advance on the restaurant space, $14,400 cash. d. Equipment was purchased for $44,000-$15,000 in cash and the bal- ance on account. e. Furnishings were purchased for $28,400 cash. f. Owner purchased $3,000 of food inventory on account and paid $4,000 cash for beverage inventory. g. Owner purchased supplies for $2,650 cash. h. Owner purchased $3,800 of food inventory on account. i. Owner paid $2,400 for a one-year liability and casualty insurance policy. j. Employees were paid wages of $12,800 and salaries of $2,400. k. Revenue for the first month was $32,800-92 percent cash, 6 percent on credit cards, and 2 percent on accounts receivable. 1. Owner paid $12,000 on accounts payable. m. Owner paid $2,000 on notes payable, plus interest of $200. After journalizing and posting each transaction, prepare an unadjusted trial balance for the month ended March 31, 2004. PROBLEMS 47