Assignment
Balance Sheet Values, September 30, 2011($ in millions)
|
Cash
|
$ 2,389
|
|
|
Accounts and notes receivable
|
1,204
|
|
|
Inventories
|
115
|
|
|
Prepaid expenses
|
714
|
|
|
Property and equipment, at cost
|
35,220
|
|
|
Other assets
|
5,518
|
|
|
Accumulated depreciation
|
|
$12,882
|
|
Notes and accounts payable
|
|
750
|
|
Other liabilities
|
|
18,189
|
|
Paid-in capital
|
|
5,447
|
|
Retained earnings
|
|
35,330
|
|
Other stockholders' equity'
|
27,438
|
|
|
Total
|
$72,598
|
$72 598
|
Consider the following assumed partial summary of transactions for October 2011 ($ in millions):
a. Revenues in cash, company-owned restaurants, $1,550.
b. Revenues, on open account from franchised restaurants, $550. Open a separate revenue account for these sales.
c. Inventories acquired on open account, $827.
d. Cost of the inventories sold. $820.
e. Depreciation, $250. (Debit Depreciation Expense.)
f. Paid rent and insurance premiums in cash in advance, $142. (Debit Prepaid Expenses.)
g. Prepaid expenses expired, $137. (Debit Operating Expenses.)
h. Paid other liabilities in cash, $163.
i. Cash collections on receivables, $590.
j. Cash disbursements on notes and accounts payable, $747.
k. Paid interest expense in cash, $110. I. Paid other expenses in cash, mostly payroll and advertising, $1, 010. (Debit Operating Expenses.)
Required
- Record all transactions in the journal
- Beginning T-accounts and post the journal entries to the T-accounts. Key the entries with the transaction letters used here
- At the end, Prepare a trial balance for October 31 20X1.