The following events apply to The Pizza Factory for the 2012 fiscal year: 1. The company started
Question:
1. The company started when it acquired $18,000 cash from the issue of common stock.
2. Purchased a new pizza oven that cost $15,000 cash.
3. Earned $26,000 in cash revenue.
4. Paid $13,000 cash for salaries expense.
5. Paid $6,000 cash for operating expenses.
6. Adjusted the records to reflect the use of the pizza oven. The oven, purchased on January 1, 2012, has an expected useful life of five years and an estimated salvage value of $3,000. Use straight-line depreciation. The adjusting entry was made as of December 31, 2012.
Required
a. Record the above transactions in a horizontal statements model like the following one.
.png)
b. What amount of depreciation expense would The Pizza Factory report on the 2012 income statement?
c. What amount of accumulated depreciation would The Pizza Factory report on the December 31, 2012, balance sheet?
d. Would the cash flow from operating activities be affected by depreciation in2012?
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a Balance Sheet Income Statement Statemt of Assets Equity Rev Exp ...View the full answer
Answered By
Mary Boke
As an online tutor with over seven years of experience and a PhD in Education, I have had the opportunity to work with a wide range of students from diverse backgrounds. My experience in education has allowed me to develop a deep understanding of how students learn and the various approaches that can be used to facilitate their learning. I believe in creating a positive and inclusive learning environment that encourages students to ask questions and engage with the material. I work closely with my students to understand their individual learning styles, strengths, and challenges to tailor my approach accordingly. I also place a strong emphasis on building strong relationships with my students, which fosters trust and creates a supportive learning environment. Overall, my goal as an online tutor is to help students achieve their academic goals and develop a lifelong love of learning. I believe that education is a transformative experience that has the power to change lives, and I am committed to helping my students realize their full potential.
4+ Reviews
22+ Question Solved
Related Book For 
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
Question Posted:
