The journal entries for the transactions are as follows: a. Brock invested cash and assets, resulting in an increase in his owner's equity. b. Food supplies were purchased on account and recorded as an increase in assets and accounts payable. c. Equipment was purchased for cash, resulting in an increase in assets and a decrease in cash. d. Utility bills were paid, resulting in a decrease in cash and an expense recorded. e. Newspaper advertising was paid for with cash, resulting in a decrease in cash and an expense recorded. f. Wages were paid, resulting in a decrease in cash and an expense recorded. g. Cooking supplies were purchased for cash, resulting in an increase in assets and a decrease in cash. h. Sales for the month were recorded as an increase in cash and revenue, and the cost of goods sold was recorded as an expense.
Step-by-step explanation:
Brock Leigh opened "The Vegetable Garden" - a gourmet restaurant, on May 1. Here are the journal entries for the transactions:
a. Brock invested cash of $20,000, and the following assets: Furniture $25,000, Equipment $35,000, Building $80,000.
Assets: Furniture $25,000
Assets: Equipment $35,000
Assets: Building $80,000
Owner's Equity: Brock, Capital $20,000
b. Purchased food supplies worth $10,000 on account (to be paid next month). The food supplies were all used up during the month.
Assets: Food Supplies $10,000
Accounts Payable: Food Supplier $10,000
c. Purchased new equipment for $3,000 cash.
Assets: Equipment $3,000
Cash $3,000
d. Paid the utility bills $1,050.
Utilities Expense $1,050
Cash $1,050
e. Paid for newspaper advertising $1,000.
Advertising Expense $1,000
Cash $1,000
f. Paid wages of $5,500.
Wages Expense $5,500
Cash $5,500
g. Paid $1,000 for cooking supplies to be used next month.
Assets: Cooking Supplies $1,000
Cash $1,000
h. Sales for the month (all in cash) were $19,000 for food. Cost of sales were $3,000.
Cash $19,000
Sales Revenue $19,000
Cost of Goods Sold $3,000
The probable question is in the image attached.