Problem 4: (3 points each, 9 points total) AgriFoods, Inc. prepares and delivers agricu service providers. One of its key customers is Home pares and delivers agricultural products to industrial-scale kitchens and food s. One of its key customers is Home Kitchen & Co., which provides cafeteria contract to supply a pre-specified amount of vegetables to For of corporations and universities. On January 1, AgriFoods obtained a one-year Y a pre-specified amount of vegetables to Home Kitchen, and received 3000,000 cash. Then, on March 15, AgriFoods hired Home to run one of its employee cafeteras fora period of six months, from April to September, and paid $70,000 in cash. For similar arrangements, Home usually charged $50,000. Required: (a) Prepare the journal entries AgriFoods would record on January 1 and January 3 with respect to the sales contract. Assume revenue is accrued on a monthly basis. Date Accounts Jan 1 Jan 31 (b) Prepare the journal entry to account for AgriFoods' purchase of Home's services. Accounts 3/15 70,000 Problem 4: (3 points each, 9 points total) AgriFoods, Inc. prepares and delivers agricu service providers. One of its key customers is Home pares and delivers agricultural products to industrial-scale kitchens and food s. One of its key customers is Home Kitchen & Co., which provides cafeteria contract to supply a pre-specified amount of vegetables to For of corporations and universities. On January 1, AgriFoods obtained a one-year Y a pre-specified amount of vegetables to Home Kitchen, and received 3000,000 cash. Then, on March 15, AgriFoods hired Home to run one of its employee cafeteras fora period of six months, from April to September, and paid $70,000 in cash. For similar arrangements, Home usually charged $50,000. Required: (a) Prepare the journal entries AgriFoods would record on January 1 and January 3 with respect to the sales contract. Assume revenue is accrued on a monthly basis. Date Accounts Jan 1 Jan 31 (b) Prepare the journal entry to account for AgriFoods' purchase of Home's services. Accounts 3/15 70,000