Financial Accounting

Problem 1 T-accounts Dunk-in Donuts-December 31, 2011 T-account Supplies  Debit ( $) Credit ($)2,500  T-account Prepaid insurance  Debit ( $) Credit ($)1,250  T-account Food and beverage inventory  Debit ( $) Credit ($)2,000  T-account Equipment  Debit ( $) Credit ($)10,000  T-account Accumulated depreciation, Equipment Debit ( $) Credit ($) 4,000 T-account Accumulated depreciation, building  Debit ( $) Credit ($) 6,000 Adjusted Trial balance December 31, 2011 Debit($)Credit($) Food and beverage inventory$1,650 Insurance  500 Depreciation of equipment$1,500 Depreciation of the building$2,500Salaries $200Supplies $1,100Total 34504000 Problem 2 1. Income statement Income statement Milford’s Fish House December 31, 2010 Revenues Account receivable 17,000 Jerry Young, Capital 58,999 Food revenue 361,350 Cost of goods sold 126,473 Total revenues $563,822 Expenses Accrued wages 600 Note payable 15,000 Mortgage payable 79,000 Jerry Young, drawing 4,600 Wages 108,405 Advertising 14,454 Repair and maintenance 18, 068 Insurance 7, 227 Depreciation 15,000 Total expenses $248,854 Net income $314,968 Balance sheet Balance sheet Milford’s Fish House December 31, 2010 Assets ($)Liabilities ($)Cash 32,522Short term investment 12,000Accounts Receivable17,000Food and beverage inventory 9,200Equipment 35,000Accumulated Depreciation, Equipment5,000Building 167,000Accumulated Depreciation, Building40,000Accounts payable7,000Accrued wages600Note payable 15,000Mortgage payable 79,000Jerry Young, Capital58,999Jerry Young, Drawing46,000Food revenue361,150C...