Required

Prepare the balance sheet as of the end of August and the income statement for the month of August.

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Meredith Snelson started Campus Pizzeria, Inc. on August 1, 1998. Transactions for August are: 1. Snelson invested $5000 in the business as owner. 2. The firm paid $750 rent for the month of August. 3. On August 01, 1998, the firm borrowed $4000 from a bank on a 3% monthly note payable, with interest payable monthly and the principal to be paid in full at the end of 2 years. Interest for August was paid in cash. 4. Equipment costing $7200 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 $6550. 6. Pizzeria's employees were paid $3000 in wages. 7. Pizza sales for August were $12000, all for cash. 8. Sales in August consumed $6000 worth of ingredients and boxes. 9. At the end of the month, bills for various utilities totaled $450. 10. $4800 of accounts payable was paid. 11. The firm catered a party for a fee of $200. Since the customer was a friend of Snelson, the customer was told that payment could be made some time later in the month. 12. A check was received from Snelson's friend for the party that they catered. Meredith Snelson started Campus Pizzeria, Inc. on August 1, 1998. Transactions for August are: 1. Snelson invested $5000 in the business as owner. 2. The firm paid $750 rent for the month of August. 3. On August 01, 1998, the firm borrowed $4000 from a bank on a 3% monthly note payable, with interest payable monthly and the principal to be paid in full at the end of 2 years. Interest for August was paid in cash. 4. Equipment costing $7200 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 $6550. 6. Pizzeria's employees were paid $3000 in wages. 7. Pizza sales for August were $12000, all for cash. 8. Sales in August consumed $6000 worth of ingredients and boxes. 9. At the end of the month, bills for various utilities totaled $450. 10. $4800 of accounts payable was paid. 11. The firm catered a party for a fee of $200. Since the customer was a friend of Snelson, the customer was told that payment could be made some time later in the month. 12. A check was received from Snelson's friend for the party that they catered.

Answer rating: 100% (QA)

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