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BACKGROUND: Cougar Hotel opened October 1, 2020. The hotel operates on a fiscal year and is in the last month of its fiscal year, September 30, 2021. The accounting department will be closing the books on September 30, 2021. Observing GAAP, accrual basis of accounting is used. Below is the chart of accounts for Cougar Hotel and the balances can also be found in the Ledger. Chart of Accounts 100 Cash 310 Dividends 110 Accounts Receivable 390 Retained Earnings 120 Inventory--Food 399 Income Summary 130 Prepaid Insurance 400 Room Revenue 140 Equipment-Kitchen 410 Food Revenue 145 Accumulated Depreciation-Equip. 500 Cost of Sales--Food 200 Accounts Payable 600 Payroll Expense 205 Utilities Payable 700 Menu Expense 208 Payroll Payable 710 Insurance Expense 210 Unearned Revenue 720 Utility Expense 300 Common Stock 725 Depreciation Expense TRANSACTIONS: Sept. 1: The controller purchased a twelve-month insurance policy on September 1, 2021, which will cover the hotel until August 31, 2022. The cost was $5,700. Sept. 2: The hotels bought some new kitchen equipment to replace some old equipment. The total cost was $80,000 and they are supposed to have a useful life of 10 years with a salvage value of $2,000. This was purchased on account with Ace Kitchen Supply. Sept. 5: The restaurant manager bought some menus worth $900 from Houston Graphics. She picked up the menus on her way into work and gave the controller the invoice. The invoice is not due until October. These are going to be used right away, as they are for the Hotel's One Year Anniversary special event. BACKGROUND: Cougar Hotel opened October 1, 2020. The hotel operates on a fiscal year and is in the last month of its fiscal year, September 30, 2021. The accounting department will be closing the books on September 30, 2021. Observing GAAP, accrual basis of accounting is used. Below is the chart of accounts for Cougar Hotel and the balances can also be found in the Ledger. Chart of Accounts 100 Cash 310 Dividends 110 Accounts Receivable 390 Retained Earnings 120 Inventory--Food 399 Income Summary 130 Prepaid Insurance 400 Room Revenue 140 Equipment-Kitchen 410 Food Revenue 145 Accumulated Depreciation-Equip. 500 Cost of Sales--Food 200 Accounts Payable 600 Payroll Expense 205 Utilities Payable 700 Menu Expense 208 Payroll Payable 710 Insurance Expense 210 Unearned Revenue 720 Utility Expense 300 Common Stock 725 Depreciation Expense TRANSACTIONS: Sept. 1: The controller purchased a twelve-month insurance policy on September 1, 2021, which will cover the hotel until August 31, 2022. The cost was $5,700. Sept. 2: The hotels bought some new kitchen equipment to replace some old equipment. The total cost was $80,000 and they are supposed to have a useful life of 10 years with a salvage value of $2,000. This was purchased on account with Ace Kitchen Supply. Sept. 5: The restaurant manager bought some menus worth $900 from Houston Graphics. She picked up the menus on her way into work and gave the controller the invoice. The invoice is not due until October. These are going to be used right away, as they are for the Hotel's One Year Anniversary special event