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Category > Management Posted 09 Jan 2018 My Price 8.00

Bachino’s Pizza

Preparation and Interpretation of Financial Statements

P9. Bachino’s Pizza’s accounts follow. The company has just completed its first year of operations ended September 30, 2014.

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                                                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts Payable

$  21,000

Accounts Receivable

26,400

Cash

5,200

Delivery Truck Rent Expense

14,400

Equipment

12,600

Equipment Rental Expense

5,800

Marketing Expense

3,000

Owner’s Capital

4,000*

Pizza Revenue

164,000

Salaries Expense

112,000

Salaries Payable

1,400

Supplies

800

Supplies Expense

8,200

Withdrawals

2,000

*Represents the initial investment by the owner.

 

 

reQUIreD

 

1.    Prepare Bachino’s Pizza’s income statement, statement of owner’s equity, and bal- ance sheet.

 

2.    Why would Bachino’s Pizza’s owner set his business up as a sole proprietorship and not a partnership? Discuss how profits and obligations are shared in the two forms of business organizations.

 

 


Answers

Maurice Tutor
(5)
Status NEW Posted 09 Jan 2018 01:01 PM My Price 8.00

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