Chet and Sandy Wilson saw a business opportunity. Local school districts, churches, and other community non-profit...

 

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Chet and Sandy Wilson saw a business opportunity. Local school districts, churches, and other community non-profit groups were continually looking for fundraisers to raise money. The Wilsons loved to support the community but also wanted to make some extra income. Their friends and family raved about the couple's homemade pizzas, and the concept for their company was born. Part 1: First Month of Business In October, with $1,500 cash in hand, the Wilsons paid an attorney friend $250 to help them form Freshly Frozen Pizzas (FFP) as a limited liability corporation. Their first customer was the preschool at their church. The Wilsons spent $50 to design and copy a flyer featuring one of two Freshly Frozen Pizzas varieties - cheese or pepperoni - at a sales price of $12 each. The charge from FFP to the preschool would be $6 per pizza. Preschool families were given one week to complete their orders. At the end of the sales period, preschool fami' had ordered 96 pizzas: 52 cheese pizzas and 44 cheese and pepperoni combo pizzas. Working out of their home kitchen, it took the Wilsons a week to make enough pizzas to fill the orders (and a $480 new chest freezer they put on their credit card; they'll pay it off next month). They spent $115 for dough and sauce ingredients, $120 for cheese, $55 for the pepperoni, and an additional $20 for packaging supplies. They delivered the frozen pizzas te the preschool at a scheduled pickup time. Rather than trying to collect payment from each family, the preschool agreed to charge each family's monthly tuition statement for their pizzas and would cut a check to Freshly Frozen Pizzas for the total due during the first week of November. Part 1 Assignment Use an Excel worksheets to complete the following: a. First month T-Accounts transactions The equipment will depreciate straight line over 60 months Assume there was no inventory remaining at month end b. First month Income Statement C. First month Balance Sheet d. First month Statement of Cash Flows Chet and Sandy Wilson saw a business opportunity. Local school districts, churches, and other community non-profit groups were continually looking for fundraisers to raise money. The Wilsons loved to support the community but also wanted to make some extra income. Their friends and family raved about the couple's homemade pizzas, and the concept for their company was born. Part 1: First Month of Business In October, with $1,500 cash in hand, the Wilsons paid an attorney friend $250 to help them form Freshly Frozen Pizzas (FFP) as a limited liability corporation. Their first customer was the preschool at their church. The Wilsons spent $50 to design and copy a flyer featuring one of two Freshly Frozen Pizzas varieties - cheese or pepperoni - at a sales price of $12 each. The charge from FFP to the preschool would be $6 per pizza. Preschool families were given one week to complete their orders. At the end of the sales period, preschool fami' had ordered 96 pizzas: 52 cheese pizzas and 44 cheese and pepperoni combo pizzas. Working out of their home kitchen, it took the Wilsons a week to make enough pizzas to fill the orders (and a $480 new chest freezer they put on their credit card; they'll pay it off next month). They spent $115 for dough and sauce ingredients, $120 for cheese, $55 for the pepperoni, and an additional $20 for packaging supplies. They delivered the frozen pizzas te the preschool at a scheduled pickup time. Rather than trying to collect payment from each family, the preschool agreed to charge each family's monthly tuition statement for their pizzas and would cut a check to Freshly Frozen Pizzas for the total due during the first week of November. Part 1 Assignment Use an Excel worksheets to complete the following: a. First month T-Accounts transactions The equipment will depreciate straight line over 60 months Assume there was no inventory remaining at month end b. First month Income Statement C. First month Balance Sheet d. First month Statement of Cash Flows

Answer rating: 100% (QA)

The first 4 sub parts of the questions ie 1 T accounts Oct 2 Balance Sheet Oct 3 Income Statement Oct 4 Cash Flow Statement Oct have been answered The ... View the full answer