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ACCT 6-10-10 - 5's Diner 1 2 Rented a buildinglor 2 years...

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5 's Diner 1 Doug started his diner business with a cash investment of $SOO,OOO 2 Rented a buildinglor 2 years, 560,000 3 Purchased restaurant furniture 550,000, kitchen equipment S100,000 and a catering van for 535,000 by putting 550,000 down in cash and the rest on a note. 4 Hired 3 cooks at 58 per hour, 5 servers at 55 per hour plus tips and a janitor at S20 per hour 5 First day's revenues are 525,000 all paid in cash 6 Paid a fine for having "slime in the ice machine", 52,500 7 Revenue totaled 515,000---510,000 on account and the rest in cash 8 Paid wages, 520,000 9 Purchased a two year liability insurance policy, 530,000 10 Received payment on account 5525 b
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Name: .%,* fflc,xfi*S Date: (o-lo - l0 l. 2. J. 4. 5. On January l, the Biddle & Biddle, CPAs received a $6,000 cash retainer for legal services to be rendered ratably over the next 3 months. The full amount was credited to the liability account Unearned Revenue. Assuming that the revenue is earned ratably over the 3 month period, what adjusting journal entry should be made at January 31? On February 1, the Acts Tax Service received a $2,800 cash retainer for tax preparation services to be rendered ratably over the next 4 months. The full amount was credited to the liability account Unearned Revenue. Assuming that the revenue is earned ratably over the 4 month period, what balance would be reported on the February 28 balance sheet for Unearned Revenue? Better Publications, sold annual subscriptions to their magazine for $36,000 in December, 2009. The magazine is published monthly. The new subscribers received their first magazine in January, 2010.
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