Chicken Feet Burgers sol

Chicken Feet Burgers sol - Chicken Feet Burgers Chicken...

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1 Chicken Feet Burgers E1: Issues 75,000 shares of $1 par value stock and receives $100,000 in cash E2: Buys inventory and pays $20,000 cash CHICKEN FEET RESTAURANT had the following Accounting Events during August: Chicken Feet Burgers E3: Buys inventory on account for $8,000 E4: Buys equipment costing $15,000 in exchange for $5,000 cash and a $10,000 promissory note due in two years E5: Neighboring retirement home closes, probably resulting in a 5% decline in business during August E6: Gives $1,000 of inventory to Professor Mingyi in exchange for a promissory note due in 6 months E7: Returns $2,000 of inventory from E2 for a full refund E8: Signs a purchase agreement to buy 2 tons of soy sauce during the next 6 months E9: Returns $3,000 of inventory from E3 for full credit to its account E10: Paid $2,000 on the promissory note related to the equipment purchase E11: Issues 7,500 shares of stock in exchange for equipment costing $10,000 E12: Paid $3,000 on open account E13: 2 vendors announced price increases of 10% for next month E14: Professor Mingyi buys a $500 T.V. set for his family from personal savings E15: Hires a new cook with a contract to pay her $1,000,000 during the next year Chicken Feet Burgers z Chicken Feet Restaurant’s Chart of Accounts: ± C for cash ± AR for accounts receivable ± Inv for inventories ± NR for notes receivable ± E for equipment ± AcDep for accumulated depreciation ± AP for accounts payable ± NP for notes payable S r common stock ± CS for common stock ± APIC for additional paid-in capital ± RE for retained earnings “Accounting Equation” Approach to Recording Transactions The asset accounts starting with cash. The permanent owners’ equity accounts, which are reported on the balance heet The temporary owners’ equity accounts such as revenues and expenses, which pertain to the income tatement The liabilities accounts, often starting with ccounts sheet. statement. These accounts are called temporary accounts because they start and end each period with a zero balance. accounts payable to suppliers.
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2 =+ ++++-= +++++ Beginning Balance E1 Is sues s tock E2 Buys inventory E3 Buys inventory E4 Buys equipment E5 Retirement home 6 ventory to Mark Assets Liabilities Permanent Owners' Equity AR Inv NR AcDep AP RetEarn CS APIC E NP Chicken Feet Burgers C E7 Returns inventory E8 Purchase agreement E9 Returns inventory E10 Pays for equipment E11 Issues stock E12 Pays on open account E13 Vendors raising prices E14 Mingyi buys T.V. set E15 New cook Ending Balance AcDep: Ac cumulated Dep reciation CS: Common Stock C: Cash AR: Accounts Receivable Inv: Inventories NR: Notes Receivable AP: Accounts Payable RE: Retained Earnings APIC: Additional Paid-In Capital E: Equipment NP: Notes Payable Record the entries into the equation: start with issuing stock Chicken Feet Burgers C + AR + Inv + NR + E - AcDep AP + NP + CS + APIC + RE ii B l Assets Liabilities Permanent Owners' Equity Beginning Balance E1 Is sues s tock E2 Buys inventory E3 Buys inventory E4 Buys equipment E5 Retirement home E6 Inventory to Mark E7 Returns inventory E8 Purchase agreement E9 Returns inventory E10 Pays for equipment
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Chicken Feet Burgers sol - Chicken Feet Burgers Chicken...

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