QUESTION1 The balance sheet items for Al\'s Pizza Shop (arranged in alphabetical
ID: 2329145 • Letter: Q
Question
QUESTION1 The balance sheet items for Al's Pizza Shop (arranged in alphabetical order) were as follows at August 01, 2018. Note: The value for Retained Earnings is missing $210,000 Accounts Receivable$ 9,000 $ 18,000 $ 29,000 $190,000 Building Supplies Notes Payable $ 8,400 $78,000 Equipment and FixturesS 20,000 Salaries Payable S 5,000 $160,000 Accounts Payable Cash Capital Stock Land During the next few days, the following transactions occurred Additional capital stock was sold for $40,000. The business has paid the accounts payable in full. The business has yet to make any payment on the notes payable or salaries payable. August 8 A new pizza oven was purchased at a cost of $8,000 to be paid within 25 days. New Supplies (pizza cutters and boxes) were purchased for $2,200 cash from a restaurant supply center that was going out of business. These supplies would have cost $3,900 if purchased through normal channels. August 12 Instructions a. Prepare a balance sheet at August 1, 2018. Include a proper heading and organize your balance sheet following the GAAPs format. Prepare a balance sheet at August 15, 2018. Include a proper heading and organize your balance sheet following the GAAPs format b. o searchExplanation / Answer
Working Note
A. property ,plant and equipments include
Land $ 160000
equipment $ 20000
.BUILDING $ 210000
B. capital stock is a part of perferres stock
wORKING nOTE
a. Adjustment in Cash
Opening Cash balance $29000
Add:-issue of capital stock $40000
less Account payable $18000
Less purchase of supllies $ 2200
BALANCE AS ON 15 AUG $48800
B.PIZZA OVEN is part of Property, Plant, and Equipment .
3.
4.As on 15 August company has more strong financial condition
because Current r ation of company as on 1 Aug is
=Current assets /Current Liabilies =390000/101000 =3.86
Current ratio as on 15 aug is
=398000/91000 =4.37
Balance Sheet of Al's pizza Shop as on 1st August 2018 Assets Amount Current Assets Cash and Cash Equivalents $ 29,000 Accounts Receivable, net of allowance for doubtful accounts $ 9,000 Inventory $ 8,400 Short-Term Investments Prepaid Expenses Long-Term Assets Property, Plant, and Equipment, net of depreciation $ 390,000 Long-Term Investments Intangible Assets Investments Accounted for Using the Equity Method (between 20-50% ownership) Total Assets $ 436,400 Liabilities Current Liabilities Accounts Payable $ 23,000 Notes Payable – Current $ 78,000 Unearned Revenue Income Tax Payable Long-Term Liabilities Long-Term Debt Other Long-Term Liabilities Stockholder’s Equity Retained Earnings $ 145,400 Common Stock Preferred Stock $ 190,000 Treasury Stock Total Liabilities and Equity (needs to equal total assets): $ 436,400