Total assets Total liabilities and Owner\'s equity Problem # 2 (25 Pts.) Mason\'
ID: 2342278 • Letter: T
Question
Total assets Total liabilities and Owner's equity Problem # 2 (25 Pts.) Mason's Restaurant had the following transactions during the month of May and Catering is a sole proprietorship owned by Michael Mason. The business May 1 Mason contributed $45,000 cash in exchange for capital. 5 Paid monthly rent on the restaurant equipment, $1,650. 12 Purchased office supplies on account, $1,500. 15 Borrowed $25,000 from the bank for business use. 26 Paid $30,000 cash for a delivery van. 28 Paid $1,500 on account. 29 The business received $1,600 for catering services for a wedding on June 11 31 Revenues earned during the month included $20,500 cash and $14,500 on account. Received the May utility bill for $1,000. The amount is due on June 10 and will be paid 31 on that date. 31 Paid employees' salaries $5,500; restaurant rent $3,000 and advertising for May $800. Record a compound entry Received the bill for catering food and supplies used in May, $8,500 31 The bill is due on June 15 and will be paid on that date 31 Michael Mason withdrew $6,000 cash from the business for personal use. The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Delivery Van; Accounts Payable; Utilities Payable; Unearned Revenue; Notes Payable; Mason, Capital; Mason, Withdrawals; Service Revenue; Salaries Expense; Equipment Rent Expense; Restaurant Rent Expense; Utilities Expense; Catering Expense; and Advertising Expense. Required: Journalize each transaction. Explanations are not needed.Explanation / Answer
Date Account title Debit credit may 1 cash 45000 mason capital 45000 may 5 Equipment Rent expense 1650 cash 1650 may12 office supplies 1500 Accounts payable 1500 may 15 cash 25000 Bank loan 25000 may 26 Delivery van 30000 cash 30000 may28 Accounts payable 1500 cash 1500 may 29 cash 1600 unearned service revenue 1600 may 31 cash 20500 Accounts receivable 14500 service revenue 35000 may 31 utility expense 1000 utilities payable 1000 may .31 salaries expense 5500 restuarant Rent expense 3000 advertising expense 800 cash 9300 may 31 catering expense 8500 Accounts payable 8500 may 31 mason withdrawls 6000 cash 6000