Warm Up Activity
Rex Restaurant is a fast food restaurant owned by a sole proprietor. There are four branches in New York City, and they serve nearly 10,000 customers daily.
The business activities include purchasing ingredients, preparing food, and selling it to customers. They also provide home delivery service to customers.
Their major financial transactions are:
- Total month's purchases $100,000
- Salaries paid $40,000
- Sales $200,000
- Other expenses $20,000
Study, analyze, and classify the business transactions.
Identify how to record and post the transactions to a ledger account.