Molly’s Meal Delivery service has been in business for seven years. The Chart of Accounts is below. They provide “home-cooked” meals for corporate events as well as individual needs Molly’s operates with a December 31, 20XX financial year-end.
| Chart of Accounts | |
|---|---|
| Assets | |
| 101 | Cash |
| 140 | Food Supplies |
| 145 | Kitchen Supplies |
| 150 | Prepaid Rent |
| 175 | Ovens |
| 175.1 | Accum. Depr. – Ovens |
| 176 | Kitchen Equipment |
| 176.1 | Accum. Depr. – Kitchen Equipment |
| Liabilities | |
| 201 | Accounts Payable |
| 210 | Wages Payable |
| Owner’s Equity | |
| 301 | Molly Murphy, Capital |
| 302 | Molly Murphy, Drawing |
| Revenues | |
| 401 | Meal Delivery Revenue |
| Expenses | |
| 501 | Food Supply Expense |
| 511 | Wage Expense |
| 521 | Rent Expense |
| 531 | Kitchen Supply Expense |
| 541 | Phone Expense |
| 542 | Utilities Expense |
| 561 | Depr. Expense – Ovens |
| 562 | Depr. Expense – Kitchen Equipment |
The following transactions took place during November, 20XX
Molly invested cash in business, $20,000
Purchased (2) new ovens on account for $6,300. The ovens have estimated useful lives of 7 years. The ovens will be paid for in January, with no interest.
Molly paid rent for November and December, $3,000 total
Purchased food supplies from Sammy’s Super Market on account, $2,000
Deposited meal delivery fees, $3,400
Paid wages to kitchen workers, $2,000
Purchased kitchen supplies with cash, $500
Deposited meal delivery fees, $3,000
Purchased food supplies from Sammy’s Super Market on account, $2,500
Deposited meal delivery fees, $3,200
Paid wages to kitchen workers, $2,050
Deposited meal delivery fees, $3,050
Paid phone bill, $200
Paid utilities bill, $500
Molly Murphy withdrew cash for personal use, $3,000
Adjustment information for the end of November is provided below.
Food supplies remaining on hand, $2050. Beginning balance was $2100.
Kitchen supplies used during the month, $600. Beginning balance was $1200.
November rent was used.
Depreciation on the kitchen ovens for November, $75. All other ovens and kitchen equipment were fully depreciated earlier in the year.
Wages earned, but not yet paid at end of November, $950
Journalize the adjusting entries to the General Journal.
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