In: Accounting
The trial balance of Stephanie’s Steakhouse at the beginning of the day, July 1, 20X1, was:
Cash $ 1,500
Marketable Securities 5,000
Accounts Receivable (Erica Lee) 20
Accounts Receivable (Monica Ray) 15
Office Supplies 2,250
Cleaning Supplies 500
Furniture 1,000
Equipment 2,000
Accounts Payable (Stacie Supply, Inc.) $ 400
Notes Payable (Mineral State Bank) 1,500
Stephanie Smith, Capital 2,085
Food Sales 25,000
Beverage Sales 7,000
Food Expense 10,000
Beverage Expense 2,000
Wages Expense 8,000
Utilities Expense 1,000
Rent Expense 2,000
Insurance Expense 500
Office Supplies Expense 100
Advertising Expense 100
$ 35,985 $ 35,985
Transactions for July 1, 20X1, were as follows:
a. Received cash on account from Erica Lee, $10.
b. Paid rent for the month of June, $200.
c. Purchased food (to be expensed) on account from Stacie Supply, Inc., $250.
d. Paid utilities bill for June, $100.
e. Paid advertising bill for newspaper advertisement for July 1, $5.
f. Paid temporary help for their labor for the day, $20.
g. Sales on account to Monica Ray, $5 ($4 for food and $1 for beverages).
h. Cash food sales for the day and beverage sales for the day, $250 and $60 respectively.
Required:
1. Set up T–accounts for each account listed in the trial balance of Stephanie’s Steakhouse. Record the balance in each T–account per the trial balance. (Be sure to record the amounts on the proper side of the account.)
2. Record the transactions for July 1, 20X1. Identify each amount by its transaction letter.
3. Prepare a trial balance for July 1, 20X1 (end of day).