Question

Problem 16 Paul Olivia opened a pizza business under the name of Olivia's Pizza Parlor, and during the first week completed the following transactions: a. Invested cash of $2,000 and the following assets at their fair market values: furniture, $2,000; equipment, $3,000; and building, $8,000. b. Purchased food and beverages on account, costing $500 and $100, respectively, thom Edgar's Food Supply. C. Purchased a typewriter with cash, $200. d. Paid for newspaper advertising, $30. e. Paid utility bills, $50. f. Paid wages for the week, $250. g. Paid for cooking supplies used during the week, $10. h. Paid $100 on account to Edgar's Food Supply. i. Received $900 from customers for pizza and beverages sold. Pizza sales amounted to $750, the remainder was beverage sales. Required: 1. Set up the following T-accounts: Cash; Furniture; Equipment; Building; Accounts Pay- able (Edgar's Food Supply); Paul Olivia, Capital; Food Sales; Beverage Sales; Adver- tising Expense; Utilities Expense; Wages Expense; Cooking Supplies Expense; Food Expense; Beverage Expense. 2. Record the transactions in the accounts with each amount identified by its transaction letter 3. Prepare a trial balance.

For sub-question 2, Please record transaction using T-account

For sub-question 3, follow the format of exhibit 8

Thanks a lot for your answer, if you can, plz type the answer.

Answer 1

1. Recording the Transactions:-

Olivia's Pizza Parlor

General Journal

For the First Week

No.	Accounts	Debit	Credit
a.	Cash	$2,000
	Furniture	$2,000
	Equipment	$3,000
	Building	$8,000
	Paul Olivia, Capital		$15,000
b.	Food Expense	$500
	Beverages Expense	$100
	Accounts Payable (Edgar's Food Supply)		$600
c.	Equipment	$200
	Cash		$200
d.	Advertising Expense	$30
	Cash		$30
e.	Utilities Expense	$50
	Cash		$50
f.	Wages Expense	$250
	Cash		$250
g.	Cooking Supplies Expense	$10
	Cash		$10
h.	Accounts Payable (Edgar's Food Supply)	$100
	Cash		$100
I.	Cash	$900
	Food Sales		$750
	Beverages Sales		$150

2. Posting the Transactions into Appropriate T-Accounts:-

Cash

No.	Debit	Credit	Balance
a.	$2,000		$2,000
c.		$200	$1,800
d.		30	$1,770
e.		50	$1,720
f.		250	$1,470
g.		10	$1,460
h.		100	$1,360
i	900		$2,260

Furniture

a.	$2,000		$2,000

Equipment

a.	$3,000		$3,000
c.	$200		$3,200

Building

a.	$8,000		$8,000

Accounts Payable (Edgar's Food Supply)

b.		$600	$600
h.	$100		$500

Paul Olivia, Capital

a.		$15,000	$15,000

Food Sales

i		$750	$750

Beverages Sales

i		$150	$150

Advertising Expense

d.	$30		$30

Utilities Expense

e.	$50		$50

Wages Expense

f.	$250		$250

Cooking Supplies Expense

g.	$10		$10

Food Expense

b.	$500		$500

Beverages Expense

b.	$100		$100

3. Preparing Trial Balance:-

Olivia's Pizza Parlor

Trial Balance

Accounts	Debit	Credit
Cash	$2,260
Furniture	2,000
Equipment	3,200
Building	8,000
Accounts Payable (Edgar's Food Supply)		$500
Paul Olivia, Capital		15,000
Food Sales		750
Beverages Sales		150
Advertising Expense	30
Utilities Expense	50
Wages Expense	250
Cooking Supplies Expense	10
Food Expense	500
Beverage Expense	100
Totals	$16,400	$16,400