Mason's Restaurant and Catering Is a Sole Proprietorship Owned by Michael

question 48

Essay

Mason's Restaurant and Catering is a sole proprietorship owned by Michael Mason.The business had the following transactions during the month of May.
May 1 Mason contributed $\$ 45,000$ cash in exchange for capital.
$\quad$ $\quad$ 5 Paid monthly rent on the restaurant equipment, $\$ 1,650$ .
$\quad$ $\quad$ 12 Purchased office supplies on account, $\$ 1,500$ .
$\quad$ $\quad$ 15 Borrowed $\$ 25,000$ from the bank for business use.
$\quad$ $\quad$ 26 Paid $\$ 30,000$ cash for a delivery van.
$\quad$ $\quad$ 28 Paid $\$ 1,500$ on account.
$\quad$ $\quad$ 29 The business received $\$ 1,600$ for catering services for a wedding on June 11 .
$\quad$ $\quad$ 31 Revenues earned during the month included $\$ 20,500$ cash and $\$ 14,500$ on account.
Received the May utility bill for $\$ 1,000$ . The amount is due on June 10 and will be paid 31 on that date.
$\quad$ $\quad$ 31 Paid employees' salaries $\$ 5,500$ ; restaurant rent $\$ 3,000$ and advertising for May $\$ 800$ .
$\quad$ $\quad$ Record a compound entry.
$\quad$ $\quad$ Received the bill for catering food and supplies used in May, $\$ 8,500$ .
$\quad$ $\quad$ 31 The bill is due on June 15 and will be paid on that date
$\quad$ $\quad$ 31 Michael Mason withdrew $\$ 6,000$ cash from the business for personal use. The business uses the following accounts: Cash; Accounts Receivable; Office Supplies; Delivery Van; Accounts Payable; Utilities Payable; Unearned Revenue; Notes Payable; Mason,Capital; Mason,Withdrawals; Service Revenue; Salaries Expense; Equipment Rent Expense; Restaurant Rent Expense; Utilities Expense; Catering Expense; and Advertising Expense.
Required: Journalize each transaction.Explanations are not needed.

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Definitions:

Health-Care Powers

Legal authority granted to an individual (through a document or decree) to make medical decisions on behalf of another person.

Living Trust

A trust created by the grantor (settlor) and effective during his or her lifetime.

Intestacy Law

Legal provisions that govern the distribution of a deceased person's estate when they die without a valid will, determining how assets are allocated among survivors.

Estate Planning

Planning in advance how one’s property and obligations should be transferred on one’s death. Wills and trusts are two basic devices used in estate planning.