Michael Field starts a catering business near a college campus. The company is named Homemade Cuisine. During the first...

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Accounting

Michael Fieldstartsa catering business near a college campus.The company is named HomemadeCuisine. During the first month ofoperations, June 2018,the business completes severaltransactionsas follows. Please record thesetransactions using journal entries:
a. Receives a $40,000contribution from Michael Fieldand issues common stockto Michael Field(1 point)
b. Purchases $4,000 of kitchenequipment on account (1point)
c. Payscash of $9,000 for3-month rent (June – July – August)(2points)
d. Payscash of $3,000 for foodingredients (1 point)
(Continued nextpage)
e.Serves customers and receives $11,000 incash with the cost of $3,000 for food ingredients asin Transaction (d) (2 points)
f.Pays cash of $2,000in salaries (1 point)
g. Pays$1,000 onthe accounts payable the business created in Transaction (b)(1 point)
h. Payscash of $1,000for utilities (1point)

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Transaction Account Titles and Explanation Debit Credit a Cash 40000 Common stock 40000 To record issuance of common stock b Kitchen equipment 4000 Accounts payable 4000 To record kitchen equipment See Answer

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Transcribed Image Text

Michael Fieldstartsa catering business near a college campus.The company is named HomemadeCuisine. During the first month ofoperations, June 2018,the business completes severaltransactionsas follows. Please record thesetransactions using journal entries:a. Receives a $40,000contribution from Michael Fieldand issues common stockto Michael Field(1 point)b. Purchases $4,000 of kitchenequipment on account (1point)c. Payscash of $9,000 for3-month rent (June – July – August)(2points)d. Payscash of $3,000 for foodingredients (1 point)(Continued nextpage)e.Serves customers and receives $11,000 incash with the cost of $3,000 for food ingredients asin Transaction (d) (2 points)f.Pays cash of $2,000in salaries (1 point)g. Pays$1,000 onthe accounts payable the business created in Transaction (b)(1 point)h. Payscash of $1,000for utilities (1point)