Question

Problem (30 points) Darden Restaurants, Inc, describes itself as follows in its first footnotes 2. D A RD E N "we are a full service restaurant company and as of May 26, 2019, we owned and operated 1,785 restaurante through diri the United States and Canada der the Olive Garden Long Horn Steakhouse Cheddar's Scratch Kitchen, Yard House The Cantal Grille. Seasons 52. marere, and Ellie V's Prime Seafood trademarks. We served wer 395 milimals cal 2019. As of Mary 26, 2019, we also had 70 restaurants operated by independent chan nes pratoare develop and franchise agree Darden's fiscal year ends on the last Sunday in May. Use the following information to provide the adjusting journal entry thar Darden Restaurants, Inc. should have made on May 26, 2019 which was the end of the fiscal year 2019. Assume that Darder makes adjusting entries once a year af fiscal year end. a) At the beginning of fiscal year 2019, Darden had 590 million in Supplies, and they purchased 545 million of Supplies during the fiscal year. A vear-end physical count of Darden's supplies indicates that they have $98 million worth of Supplies remaining as of May 26, 2019. If Darden did not make journal entries when they used supplies during the fiscal year, what adjusting journal entry should Darden make related to its Supplies on May 26, 20197 Account Title Debit Credit SPS $45 million b) On March 1, 2019, Darden paid $252 million for a one-year insurance policy starting on March 1, 2019 and running for 12 consecutive months. On March 1, Darden made the following journal entry Dr. Prepaid Insurance 252 million Cr. Cash 252 million Darden did not make any journal entries related to the prepaid insurance after the initial journal entry shown above. What adjusting journal entry should Darden make on May 26, 2019 related to prepaid insurance? Account Title Debit Credit c) At the end of fiscal 2019, Darden calculates that it has earned but not yet received or recorded $88 million of sales on account. What adjusting journal entry should Darden make on May 26, 2019 related to the sales on account? Account Title Debit Credit

Answer 1

Answer (a):

Supplies used = 90 + 45 - 98 = 437 million

Adjusting entry will be:

Answer (b):

Insurance policy was taken for one year (12 months)

March 1 to May 26 = 3 months

Insurance expense = 252 * 3/12 = $63 million

Answer (c):

Answer (d):

Answer (e):

As HOMEWORKLIB's policy 4 parts need to be answered; I have answered 5 parts