Income Statement Accounts
Sales Revenue, Salaries Expense, Wages Expense, and Interest Expense.
a. The owner opened a business account and deposited $60,000 in the bank.
b. The owner borrowed and deposited $30,000 on a note payable to the bank.
c. The owner paid one year of rent in advance on the restaurant space, $18,000 cash.
d. The owner purchased equipment $46,000; $16,000 in cash and the balance on account.
e. Furnishings were purchased for $30,400 cash.
f. The owner purchased $3,200 of food inventory on account and paid $3,800 cash for beverage inventory.
g. The owner purchased supplies for $2,650 cash.
h. The owner purchased $3,800 of food inventory on account.
i. The owner paid $2,700 for a one-year liability and casualty insurance policy.
j. Employees were paid wages of $12,800 and salaries of $2,400.
k. Sales revenue for the first month was $42,800; 90% cash, 8% credit cards, and 2% on accounts receivable.
l. The owner paid $16,600 on accounts payable.
m. The owner paid $8,000 on note payable, plus interest of $960.
#1- What is the balance of the cash account after unadjusted trial balance for the month ended March 31, 2006?
#2- How much is the balance of Debit account after unadjusted trial balance…
#3- How much is the balance of Credit account after unadjusted trial balance…