P1.1 Study the restaurant transactions for the month of March 2006 shown in

the following list, and record the necessary journal entries, skipping a line

between each entry. Journal entries and modified T ledger accounts can be

prepared easily 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 Card Receivable, Accounts Receivable,

Food Inventory, Beverage Inventory, Prepaid

Rent, Prepaid Insurance, Supplies, Equipment, and

Furnishings.

Liabilities: Accounts Payable, Note Payable.

Ownership Equity: Capital.

Income Statement Accounts

Sales Revenue, Salaries Expense, Wages Expense, and Interest Expense.

a. The owner opened a business account and deposited $60,000 in the bank.

b. The owner borrowed and deposited $30,000 on a note payable to the bank.

c. The owner paid one year of rent in advance on the restaurant space,

$18,000 cash.

d. The owner purchased equipment $46,000; $16,000 in cash and the balance

on account.

e. Furnishings were purchased for $30,400 cash.

f. The owner purchased $3,200 of food inventory on account and paid

$3,800 cash for beverage inventory.

g. The owner purchased supplies for $2,650 cash.

h. The owner purchased $3,800 of food inventory on account.

i. The owner paid $2,700 for a one-year liability and casualty insurance

policy.

j. Employees were paid wages of $12,800 and salaries of $2,400.

k. Sales revenue for the first month was $42,800; 90% cash, 8% credit

cards, and 2% on accounts receivable.

l. The owner paid $16,600 on accounts payable.

m. The owner paid $8,000 on note payable, plus interest of $960.

Journalize each transaction and then post each transaction to a general

ledger; prepare a unadjusted trial balance for the month ended March 31,

2006.