Question

In: Accounting

Jason wants to open a restaurant in Montreal. After analysing the market and requirement for resources...

Jason wants to open a restaurant in Montreal. After analysing the market and requirement for resources for opening a restaurant he finally starts his business in May. The following business transactions are occurred during its first month: May 2020.he named his restaurant as “Jason Delight”.

May 1 Invested $20,000 in cash and office equipment that had face value of $5000 in the business.

2 Purchased office equipment $2500 and office supplies for $1900 on credit

4. Paid the $1100 salary to manager

6 Performed food services for a wedding and received $12000 cash from the client on the same day.

7 Provided another Food services for a graduation event and sent the bill for $2000 to the client.

8. Paid $2500 in cash regarding the accounts payable on May 2.

9 Paid salaries of $500, telephone Bill $100, Gas $120 and rent $1000. All payments made in cash

10. Received $1600 from the client billed on May 7.

11. Received the Utility bill for $2600 but will be paid on June 15.

12. Signed for the security services contract to start in July 1

13. Purchased Office supplies $5000 on credit.

14. Received $1200 in Food Service Revenue from another client.

15. office supplies worth $350 has been used leaving the balance of $1550.

Required:

a. Record the general entries and post them into their ledger accounts and trail balance (20 pts)

b. Prepare the financial Statements (30 pts: 10 each)

a. Income statement for the month ended May 31 ,2020

b. Statement of changes in Equity for the month ended May 31,2020

c. Balance Sheet for the month ended as on May 31 ,2020

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

1. David is an experienced restaurant manager who wants to open his own restaurant (at one...

1. David is an experienced restaurant manager who wants to open his own restaurant (at one location only) and be the manager of it. He knows that he needs at least $100,000 to create and operate the business, and he knows that he can only raise $50,000 on his own towards the $100,000 he needs. Name for him all of the types of business organizations that exist (all of them). Tell him which two of those business organizations would likely...

5. The reserve requirement, open market operations, and the money supply Assume that banks do not...

5. The reserve requirement, open market operations, and the money supply Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is checkable deposits. To simplify the analysis, suppose the banking system has total reserves of $100. Determine the simple deposit multiplier and the money supply for each reserve requirement listed in the following table. Reserve Requirement Simple Deposit Multiplier Money Supply (Percent) (Dollars) 15 (1, 1.5, 6.67, 10,...

8. The reserve requirement, open market operations, and the money supply Assume that banks do not...

8. The reserve requirement, open market operations, and the money supply Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $300. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. Reserve Requirement Simple Money Multiplier Money Supply (Percent) (Dollars) 5 10 A higher reserve requirement...

The reserve requirement, open market operations, and the moneysupply Assume that banks do not hold excess...

The reserve requirement, open market operations, and the moneysupply Assume that banks do not hold excess reserves and that households do not hold currency, so the only form of money is demand deposits. To simplify the analysis, suppose the banking system has total reserves of $300. Determine the money multiplier and the money supply for each reserve requirement listed in the following table. Reserve Requirement (percent) Simple Money Multiplayer Money Supply (Dollar) 5 .5, 1, 5, 10, or 20 150,...

8. The reserve requirement, open market operations, and the money supply Assume that banks do not...

A restaurant wants to test the quality of service before training and after training. Their objective...

A restaurant wants to test the quality of service before training and after training. Their objective is to determine if the training is effective in improving their service standards. The staff were evaluated on a scale of 1 to 10 with1 being very bad and 10 being very good. Using an appropriate test determine if the training was effective in achieving its objective. The following table displays the results of the study: Participant 1 2 3 4 5 6 After...

You are the market researcher for Chili’s. Your boss wants to find out if the restaurant...

You are the market researcher for Chili’s. Your boss wants to find out if the restaurant enjoys the same market penetration in the households with children as in households without children. He asked you, the market researcher, to look into this problem. You decide to take a random sample of 350 households with children and find that 45% of them eat at Chili’s. Then, you take a random sample of 250 households without children and find out that 54% of...

Jose decides to open a restaurant. After analyzing costs and forecasting revenue he realizes he can...

Jose decides to open a restaurant. After analyzing costs and forecasting revenue he realizes he can earn about a 14% return on his investment. What factors must Jose think about in making his decision? Justin has saved 50,000. He can invest it in a real estate venture that will pay 15% for 10 years, and then in a mutual fund for an additional 10 years at a 9.75 annual return. He’s hoping that in 20 years, when he is 40,...

3. Assume the US wants to open up trade with Sweden in the hot tub market....

3. Assume the US wants to open up trade with Sweden in the hot tub market. Assume that the price in Sweden for hot tubs is higher than it is in the US. Will the US be an importer or an exporter of hot tubs? Explain, in economic terms, why you answered how you did. Draw a properly labeled graph to support your answer. Assume the US wants to open up trade with Sweden in the hot tub market. Assume...

1. identify two online job-search resources available to job seekers looking within the open market and...

1. identify two online job-search resources available to job seekers looking within the open market and explain the advantages of each.

Subjects