Assignment #2Adjusting Entries, Adjusted Trial Balance and Closing the BooksPrepared by: David...

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Assignment #2Adjusting Entries, Adjusted Trial Balance and Closing the BooksPrepared by: David ClearyPrepared for: George Brown CollegeCourse: HOSF 1277Lour Haours Continued        After having completed the previous 3 weeks’ journal entries and week 4’s, it is now month end of January(end of week 4). Month end marks the end of an operating period and thus you must prepare adjusting journal entries, close the books for the upcoming period and prepare financial statements.     After walking to the mailbox to collect the restaurants mail, you have sat down in your office to go through the mail to see if you need to make any adjustments to the restaurants financial accounts. In the mail you find:1. A utility bill from Toronto Hydro for $430.54 for the month of January as well as Feuary and March inclusively.2. A depreciation schedule from the CRA which details your fixtures will have a 12 month lifespan and no residual value and will use the straight line method of depreciation.3. A work order for an estimate of $150 from a vendor who has not yet produced an invoice for works completed during the month.4. You conduct an inventory of your food and you only have 75% of the total remaining.5. You conduct an inventory of your beverage and you have 80% of the total remaining.6. Your bank loan has a 15% annual interest rate.7. You withdrawal $2,000 out of the company for yourself and the other shareholders are ok with the withdrawal. You are to use the above information to prepare adjustment journal entries and an adjusted trial balance. You are then to close the books for the month and prepare the monthly financial statements using the financial workbook.

Khushboo · Accepted Answer

Grade Evaluation
		General Journal:
		An entry is required for each cash transaction. Six in total.
		The entries should be numbered
		Explanations should be provided for each entry
		Comments about General Journal:
		General Ledger:
		All journal entries must be posted appropriately
		Beginning balances must be correct
		Comments about General Ledger:
		Worksheet:
		All balances must be correct and in accordance with the general ledger
		Comments about Worksheet:
		Overall Assessment:
		Mark out of 8
		     Perfect - 8; Pretty close - 6;Good effort - 4
		     Poor effort - 1 or 2; Late or not submitted - 0
		Corrections, if needed, must be made before proceeding to Part II.
		Overall Comments:
List of Accounts
	List of Accounts for Loud Harbors Restaurant
	Cash
	Food Inventory
	Liquor Inventory
	Fixtures
	Accumulated depreciation, Fixtures
	Glassware
	Accumulated depreciation, Glassware
	Accounts Receivable
	Prepaid Rent
	Accounts payable
	Unearned Revenue
	Income Tax Payable
	Common Stock
	Retained Earnings
	Rent Expense
	Wage Expense
	Salary Expense
	Depreciation expense
	Income Tax Expense
	Cost of Food Sold
	Cost of Liqour Sold
	Food Sales
	Liquor Sales
	Utilities Expense
	Utilities Payable
	Other Revenue
	Advertising Expense
	Income Summary
Part 2- Adjustment Journal
	Loud Harbours
			                                            Adjustment Journal
	Date		Description		Reference	Debit	Credit
	31-Jan-2018		Utilities Expenses			144
			Utilities Payable				144
			(To record accrued utilities expenses for Jan)
			($430.54* 1 month/ 3 months)
	31-Jan-2018		Depreciation expense			700
			Accumulated depreciation, Fixtures				700
			(To record depreciation on fixtures for Jan'18)
	31-Jan-2018		Unearned revenue			150
			Other revenue				150
			(To record unearned revenue for services provided)
	31-Jan-2018		Cost of Food Sold			2,773
			Food Inventory				2,773
			(To record cost of foods sold)
	31-Jan-2018		Cost of Liqour Sold			2,880
			Liquor Inventory				2,880
			(To record cost of liquor sold)
	31-Jan-2018		Interest Expense			125
			Interest Payable				125
			(To record interest expense)
	31-Jan-2018		Equity Withdrawls			2,000
			Cash				2,000
			(To record equity withdrawal)
		 	 
		 	 
			 			 	 
Part 2- Adjustment Ledger
	Account Name:	Cash				   
						Balance
	Date	Description	Reference	Debit	Credit	Debit	Credit
	1-Jan-2018	Issue of common shares	1	100,000
	2-Jan-2018	Purchase of food inventory	2		26,650
	4-Jan-2018	Purchase of Beverage inventory	2		14,

Assignment #2 Adjusting Entries, Adjusted Trial Balance and Closing the Books Prepared by: David Cleary Prepared for: George Brown College Course: HOSF 1277 Lour Harbours Continued After having...

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