TRANSACTIONS

1. I invested $40,000 cash to open a new restaurant in Quy Nhon called M&A

2.M&A uses $20,000 of its cash to buy equipments such as tables, kitchen tools, air - conditioners,…

3. M&A spends 10,000 to acquire supplies for dishes and accessories on the dining table

4. M&A pay $900 to rent its facilities.

5. First week, the restaurant earns 1,500 for the first 75 visitors.

6. M&A pays the biweekly $600 salary for 8 waiters and $200 for chefs

7. M&A has only $4,700 in cash. I decided to arrange to buy more kitchen tools on credit from BIDV Bank
and cost $5,000
8. M&A restaurant provides dining to customers and collect $2,000.

9. M&A pays $1,200 cash (insurance premium) for a 12 - month insurance policy. Coverage begins on
December 1.
10. M&A restaurant pays $1,100 for December ultilities expenses.

11. M&A completes services and send bill for customer $1,400.

12. M&A pays BIDV Bank $1,000 cash toward the payable of transaction 7.

13. M&A eanrs $1,400 cash toward the recievable of transaction 11.

14. The owner of M&A Restaurant withdraws 300$ cash for personal use.
 Accounting Equation
TRANSACTIONS No. A = L
- -
ew restaurant in Quy Nhon called M&A 40,000
(1)

equipments such as tables, kitchen tools, air - conditioners,… 20,000

(2)
(20,000)
plies for dishes and accessories on the dining table 10,000
(3)
(10,000)
(900)
(4)

00 for the first 75 visitors. 1,500

(5)

for 8 waiters and $200 for chefs (600)

(6)
(200)
ded to arrange to buy more kitchen tools on credit from BIDV Bank 5,000 5,000
(7)

customers and collect $2,000. 2,000

(8)

remium) for a 12 - month insurance policy. Coverage begins on (800)

(9)
800
ecember ultilities expenses. (1,100)
(10)

bill for customer $1,400. 1,400

(11)

oward the payable of transaction 7.

(12) (1,000) (1,000)

e recievable of transaction 11. 1,400

(13)
(1,400)
hdraws 300$ cash for personal use. (200)
(14)

45,900 = 4,000
unting Equation Journal Entries
+ E
- Debit
40,000 (1) Cash 40,000
Capital
(2) Equip 20,000
Cash
(3) Supplies 10,000
Cash
(900) (4) Exp 900
Cash
1,500 (5) Cash 1,500
Rev
(600) (6) Exp 800
(200) Cash
(7) Euip 5,000
Acc Pay
2,000 (8) Cash 2,000
Rev
(9) Prepaid Insu 1,200
Cash
(1,100) (10) Exp 1,100
Cash
1,400 (11) Acc Receive 1,400
Rev
(12) Acc Pay 1,000
Cash
Cash 1,400
(13)
Acc Recievable
(200)

+ 41,900 84,900
 T-Accounts
Assets Liabilities
Credit
Cash Acc Payable
40,000 40,000 5,000
20,000 1,000
20,000 10,000
900 4,000
10,000 800
1,500
900 2,000
1,200
1,500 1,100
1,000
800
8,500
5,000

2,000

1,200 Supplies
10,000
1,100
10,000
1,400

1,000

1,400 Equipment
20,000
5,000

25,000

84,900 Account Recievable

1,400
1,400
-
Prepaid Expense
1,200

1,200
 Trial Balance
OE Debit Credit
Asset
Capital Cash 8,500
40,000 Supplies 10,000
Equipment 25,000
40,000 Account Recievable -
Prepaid Expense 1,200

Liabilities
Service Revenue Acc Payable 5,000
1,500
2,000 Equity
1,400 Capital 40,000
Service Revenue 4,900
4,900 Rent Expense 900
Salaries Expense 800
Withdrawals 300
Rent Expense Ultilities Expense 1,100
900
Total 47,800 49,900
900 Check

Salaries Expense
600
200

800

Withdrawals
300

300
Ultilities Expenses
1,100

1,100
 1. Income Statement 2. Statement of Equity

Revenues Beginning Balnce

Service Revenue 4,900 Capital 40,000
Total Revenue 4,900 Withdrawals 300
Net income/Loss 2,100
Ending Balance 41,800
Expenses
Rent Expense 900
Salaries Expense 800
Ultilities Expense 1,100
Total Expenses 2,800

Net income/Loss 2,100

 3. Balance Sheet

Asset
Cash 8,500
Account Recievable -
Supplies 10,000
Equipment 25,000
Prepaid Expense 1,200

Toltal Asset 44,700

Liabilities
Acc Payable 4,000

Total Liabilities 4,000

Total Equity 41,800

Total Liabilities and E 45,800