Below are the accounts of Giordanos Pizza. The company has just completed its first year of operations
Question:
Below are the accounts of Giordano’s Pizza. The company has just completed its first year of operations ended September 30, 2010.
Accounts Payable ............$10,500
Accounts Receivable .......... 13,200
Cash .................. 2,600
Delivery Truck Rent Expense ........ 7,200
Equipment ............... $6,300
Equipment Rental Expense ........ 2,900
Marketing Expense ........... 1,500
Owner’s Capital ............ 2,000
Pizza Revenue ............... 82,000
Salaries Expense ............ 56,000
Salaries Payable ............. 700
Supplies ................ 400
Supplies Expense ............. 4,100
Withdrawals .............. 1,000
*Represents the initial investment by the owner
Required
1. Prepare the income statement, statement of owner’s equity, and balance sheet for Giordano’s Pizza.
2. Why would the owner of Giordano’s Pizza set his business up as a sole proprietorship and not a partnership? Discuss the advantages of the two forms of business organizations.
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
1Financial statements prepared Giordanos Pizza Income Statement For the Year Ended September 30 2010 ...View the full answer
