Mr. Snelson started his own venture and named it as Campus Pizzeria, Inc.

He had started this venture with great difficulty and

There were certain transactions which took place in the month of August 2019, which are given as follows:
1. On August 1, Snelson invested $5,000 in the business as owner.
2. On August 1, the firm paid $750 rent for the month of August.
3. The firm borrowed $4,000 from a bank on a 9 percent note payable, with interest payable monthly and the principal due in
4. Equipment costing $7,200 was purchased for cash. The expected life of the equipment was 10 years.
5. An initial inventory of pizza ingredients and boxes was purchased on credit for $800.
6. In August pizza sales were $12,000 all for cash.
7. During August the pizzeria’s employees were paid $3,000 in wages.
8. During the month, an additional $5,750 of ingredients and boxes was purchased on credit.
9. August sales consumed $6,000 of ingredients and boxes.
10. At the end of the month, bills for various utilities used in August were received, totaling $450.
11. During the month, $4,800 of accounts payable was paid.
12. On August 13, the firm catered a party for a fee of $200. Because the customer was a friend of Snelson, the customer was
13. On August 29, a check was received from Snelson’s friend for the party of August 13.
Mr. Snelson wanted to know whether his company has made profits or losses and the status of the company.
Required Exercises:
1. Construct a set of T accounts to record the transactions that occurred at Pizzeria Shop, Inc. for the month of August 2019.
2. Prepare Balance Sheet for Campus Pizzeria, Inc.as on August 2019.
3. Prepare Income statement for Campus Pizzeria, Inc. for the period August 2019. Disregard any income taxes that might be d
enture with great difficulty and somehow managed some funds which he introduced in the business. The pizza shop specialized in ‘Thin Cr

nthly and the principal due in full at the end of two years.

of Snelson, the customer was told that payment could be made later in the month.

he company.

r the month of August 2019.

y income taxes that might be due.

za shop specialized in ‘Thin Crust Olive and Broccoli Pizza’, ‘Cheese, Jalapenos Pizza’, “Green Pepper, Barbecue Sauce Pizza’ and ‘Pepperon
ue Sauce Pizza’ and ‘Pepperoni Veggies Pizza’.
 Cash A/c
Inflows Rs. Outflows Rs.
Capital 5000 Prepaid Rent 750
Loan 4000
Sales 12000 Equipement 7200
AR Wages 3000
Accounts Payable 4800

21000 15750
Cash Balance 5250

Equipment
Rs. Rs.
Cash 7200 Depreciation 60
=7200/120

EOP Equipment Value 7140

Prepaid Rent
Rs. Rs.
Cash 750 Rent 750

Balance 0

Inventory
Rs. Rs.
Accounts Payable 800 Cost of Sales 6000
Accounts Payable 5750
Balance 550
6550

Cost of Sales
Rs. Rs.
Inventory 6000 Income Statement 6000
 Utility Expenses
Rs. Rs.
Accounts Payable 450 Balance 450

Accounts Rec
Rs. Rs.
Sales 200 Cash 200

Balance 0

Rent
Rs. Rs.
Prepaid 750 Income Statement 750

Depreciation
Rs. Rs.
Equipment 60 Income Statement 60
 Loan Sales
Rs. Rs. Rs.
Balance 4000 Cash 4000 Income St 12200

Accrued Interest Capital

Rs. Rs. Rs.
Balance 300 Interest 30 Balance 5000

Accounts Payable Wages

Rs. Rs. Rs.
Cash 4800 Inventory 800 Income St 3000
Inventory 5750
Utility Expenses 450
Balance 2200
7000

Interest Payable
Rs. Rs.
Accrued Interest 30 Balance 30
Sales
Rs.
Cash 12000
Accounts R 200

Capital
Rs.
Cash 5000

Wages
Rs.
Cash 3000
Trial Balance
List of Balances
Cash 5450 Income Statement
Equipment 7140
Inventory 550 Income
Cost of Sales 6000 Sales 12200 12200
Utility Exp 450 Less
Account Rec 0
Rent 750 Expenses
Depreciation 60 Cost of Sales 6000
Loan 4000 Utility Exp 450
Accrued Interest 30 Rent 750
Accounts Payable 2200 Depreciation 60
Interest Payable 30 Accrued Intere 30
Sales 12200 Wages 3000
Capital 5000 10290
Wages 3000
Profit 1910

Less Tax 0

Retained Earnings 1910

Mr. Snelson started his own venture and named it as Campus Pizzeria, Inc. He had started this venture with gre
There were certain transactions which took place in the month of August 2019, which are given as follows:
1. On August 1, Snelson invested $5,000 in the business as owner.
2. On August 1, the firm paid $750 rent for the month of August.
3. The firm borrowed $4,000 from a bank on a 9 percent note payable, with interest payable monthly and the p
4. Equipment costing $7,200 was purchased for cash. The expected life of the equipment was 10 years.
5. An initial inventory of pizza ingredients and boxes was purchased on credit for $800.
6. In August pizza sales were $12,000 all for cash.
7. During August the pizzeria’s employees were paid $3,000 in wages.
8. During the month, an additional $5,750 of ingredients and boxes was purchased on credit.
9. August sales consumed $6,000 of ingredients and boxes.
10. At the end of the month, bills for various utilities used in August were received, totaling $450.
11. During the month, $4,800 of accounts payable was paid.
12. On August 13, the firm catered a party for a fee of $200. Because the customer was a friend of Snelson, the
13. On August 29, a check was received from Snelson’s friend for the party of August 13.
Mr. Snelson wanted to know whether his company has made profits or losses and the status of the company.
Required Exercises:
1. Construct a set of T accounts to record the transactions that occurred at Pizzeria Shop, Inc. for the month of A
2. Prepare Balance Sheet for Campus Pizzeria, Inc.as on August 2019.
3. Prepare Income statement for Campus Pizzeria, Inc. for the period August 2019. Disregard any income taxes
 Balance Sheet Ba
Liabilities Assets Liabilities
Capital 5000 Equipment 7140 Capital
Retained Earnings 1910 Retained E

Loan 4000 Loan

CA

Cash 5450
Interest Payable 30 Inventory 550 Interest Pa
Ac Payable 2200 Ac Payable

13140 13140

d started this venture with great difficulty and somehow managed some funds which he introduced in the business. The pizza shop spe
hich are given as follows:

est payable monthly and the principal due in full at the end of two years.
ipment was 10 years.

d on credit.

d, totaling $450.

er was a friend of Snelson, the customer was told that payment could be made later in the month.

d the status of the company.

a Shop, Inc. for the month of August 2019.

. Disregard any income taxes that might be due.

 Balance Sheet
Assets
5000 Equipment 7140
1910

4000
CA

Cash 5000
30 Inventory 550
1750

12690 12690

business. The pizza shop specialized in ‘Thin Crust Olive and Broccoli Pizza’, ‘Cheese, Jalapenos Pizza’, “Green Pepper, Barbecue Sauce P
n Pepper, Barbecue Sauce Pizza’ and ‘Pepperoni Veggies Pizza’.