Coffee Shop Exercise Chapter 3 4 This is the coffee shop fr

Coffee Shop Exercise (Chapter 3 & 4) This is the coffee shop from the first week of our class (Chapter 1). Choco opened this coffee shop on July 1, 2017 and he has operated for one months (July). Following information are Choco\'s transactions after one month of operation. A Furniture Bar stools $140 ($20/ea x 7) Shelf S100 Menu board $120 Ceiling lamp $80 ($20/ea x 4 Coff 440 A Machines Coffee grinder $20 Coffee machine $40 ter $150 machine 210 1,000 350 A Cups, saucers A Supplies Napkins, paper cups...$160 milk $40 A Trash can A Coffee beans ($7Mb x 100lbs E Expense: 200 50 700 Utility $100/month Renter\'s Store rent $1,000/month 300 DEFERRED EXPENSE (prepaid rent, prepaid insurance, supplies, depreciation) Upon opening the shop, Choco paid six months\' rent $6,000 in advance (7/1/2017 to 12/31/2017). Dates Account names a. Adjusting entry on 7/31/2017 to record for used up rent in July? (Deferred expense) Dates Account names 7131/17 On 7/1/2017, Choco paid one-year Renter\'s insurance of $2,400/year in advance (7/1/2017 to 6/30/2018). Dates Account names b. Adjusting entry on 7/31/2017 to record for used up insurance in July? (Deferred expense)

Solution

a.

b.

c.

d.

e.

f.

g.

h.

i.

j.

k.

[Note - It is assumed that depreciation and Interest on loan is charged at the end of each month]

Date	Particulars	Debit	Credit
07-01-17	Prepaid Rent	$ 6,000.00
	Cash		$ 6,000.00
7/31/17	Store Rent	$ 1,000.00
	Prepaid Rent		$ 1,000.00