Expansion and Second Month of Business Deciding the pizza business would soon take over their home kitchen, the Wilsons signed a lease for a 400 square foot space at an annual gross lease cost of $18 per square foot Gross lease cost means the rent includes altes, insurance property taxes, etc.) The previous tenant, a gelato maker, had left its installied commercial freezerine frigerator, and the space was already equipped with ample counter space for assembling pizzas. Freshly Frozen Pizzas could move into the space immediately, the first lease payment is due December 1.

In the first week of November, the Wilsons spent $75 fine-tuning their pizza fundraiser flyers and distributing the flyers to two high school band departments, an elementary School PTA, and their church youth group. They would keep the prices the same as for the preschool fundraiser - Freshly Frozen Pizzas would charge 56 per pizza, and the sponsor would charge $12 per pizza. Al four groups enthusiastically agreed to sponsor a pizza fundraiser. The church youth group was ready to start immediately they wanted the pizzas ready to deliver by Thanksgiving. The two band departments and the PTA wanted to distribute the flyers in November, and accept delivery of the piczas during the second week of December. In al cases, Freshly Frozen Pizzas would not colect payment from individual pizza customers, but the company would be paid by the fundraising sponsor (band, PTA youth group, etc.) in the subsequent month after the plazas are delivered Next, the Wilsons secured a wholesale supplier for the pizza ingredients and packaging supplies. Freshly Frozen Pizzas would save about 25 percent by purchasing supplies in volume, driving down the average cost per pizza to $2.25. The wholesale supplier required payment at the time of supply delivery Because Freshly Frozen Pizzas delivers its products frozen, the Wilsons decided to stock up on inventory by making and freezing pizza in advance so that they could readily a upcoming orders. In November, they spent $875 on pizza supplies, enough to make 300 pizzas (160 cheese, 140 pepperoni) The church youth group had orders for 128 pizzas (8 cheese and 60 pepperoni). Freshly Frozen Pizzas delivered the frozen pizzas by the desired date On November 10, Freshly Frozen Pizza received payment in all from their first customer (the preschool fundraiser from the previous month

Create the following

-Second month T-Accounts transactions

The freezer purchased in the first month will continue to depreciate - FFP paid off the credit card bill from the previous month .There is inventory remaining at month end

-Second month income Statement

-Second month Balance Sheet

-Second month Statement of Cash Flows

Part 2: Expansion and Second Month of Business Deciding the pizza business would soon take over their home kitchen, the Wilsons signed a lease for a 400 square foot space at an annual gross lease cost of $18 per square foot Gross lease cost means the rent includes altes, insurance property taxes, etc.) The previous tenant, a gelato maker, had left its installied commercial freezerinefrigerator, and the space was already equipped with ample counter space for assembling pizzas. Freshly Frozen Pizzas could move into the space immediately, the first lease payment is due December 1. In the first week of November, the Wilsons spent $75 fine-tuning their pizza fundraiser flyers and distributing the flyers to two high school band departments, an elementary School PTA, and their church youth group. They would keep the prices the same as for the preschool fundraiser - Freshly Frozen Pizzas would charge 56 per pizza, and the sponsor would charge $12 per pizza. Al four groups enthusiastically agreed to sponsor a pizza fundraiser. The church youth group was ready to start immediately they wanted the pizzas ready to deliver by Thanksgiving. The two band departments and the PTA wanted to distribute the flyers in November, and accept delivery of the piczas during the second week of December. In al cases, Freshly Frozen Pizzas would not colect payment from individual pizza customers, but the company would be paid by the fundraising sponsor (band, PTA youth group, etc.) in the subsequent month after the plazas are delivered Next, the Wilsons secured a wholesale supplier for the pizza ingredients and packaging supplies. Freshly Frozen Pizzas would save about 25 percent by purchasing supplies in volume, driving down the average cost per pizza to $2.25. The wholesale supplier required payment at the time of supply delivery Because Freshly Frozen Pizzas delivers its products frozen, the Wilsons decided to stock up on inventory by making and freezing pizza in advance so that they could readily a upcoming orders. In November, they spent $875 on pizza supplies, enough to make 300 pizzas (160 cheese, 140 pepperoni) The church youth group had orders for 128 pizzas (8 cheese and 60 pepperoni). Freshly Frozen Pizzas delivered the frozen pizzas by the desired date On November 10, Freshly Frozen Pizza received payment in all from their first customer (the preschool fundraiser from the previous month Part2 Assignment Use the accompanying Excel Worksheets to complete the following: Second month T-Accounts transactions The freezer purchased in the first month will continue to depreciate - FFP paid off the credit card bill from the previous month .There is inventory remaining at month end b. Second month income Statement c. Second month Balance Sheet d. Second month Statement of Cash Flows Part 2: Expansion and Second Month of Business Deciding the pizza business would soon take over their home kitchen, the Wilsons signed a lease for a 400 square foot space at an annual gross lease cost of $18 per square foot Gross lease cost means the rent includes altes, insurance property taxes, etc.) The previous tenant, a gelato maker, had left its installied commercial freezerinefrigerator, and the space was already equipped with ample counter space for assembling pizzas. Freshly Frozen Pizzas could move into the space immediately, the first lease payment is due December 1. In the first week of November, the Wilsons spent $75 fine-tuning their pizza fundraiser flyers and distributing the flyers to two high school band departments, an elementary School PTA, and their church youth group. They would keep the prices the same as for the preschool fundraiser - Freshly Frozen Pizzas would charge 56 per pizza, and the sponsor would charge $12 per pizza. Al four groups enthusiastically agreed to sponsor a pizza fundraiser. The church youth group was ready to start immediately they wanted the pizzas ready to deliver by Thanksgiving. The two band departments and the PTA wanted to distribute the flyers in November, and accept delivery of the piczas during the second week of December. In al cases, Freshly Frozen Pizzas would not colect payment from individual pizza customers, but the company would be paid by the fundraising sponsor (band, PTA youth group, etc.) in the subsequent month after the plazas are delivered Next, the Wilsons secured a wholesale supplier for the pizza ingredients and packaging supplies. Freshly Frozen Pizzas would save about 25 percent by purchasing supplies in volume, driving down the average cost per pizza to $2.25. The wholesale supplier required payment at the time of supply delivery Because Freshly Frozen Pizzas delivers its products frozen, the Wilsons decided to stock up on inventory by making and freezing pizza in advance so that they could readily a upcoming orders. In November, they spent $875 on pizza supplies, enough to make 300 pizzas (160 cheese, 140 pepperoni) The church youth group had orders for 128 pizzas (8 cheese and 60 pepperoni). Freshly Frozen Pizzas delivered the frozen pizzas by the desired date On November 10, Freshly Frozen Pizza received payment in all from their first customer (the preschool fundraiser from the previous month Part2 Assignment Use the accompanying Excel Worksheets to complete the following: Second month T-Accounts transactions The freezer purchased in the first month will continue to depreciate - FFP paid off the credit card bill from the previous month .There is inventory remaining at month end b. Second month income Statement c. Second month Balance Sheet d. Second month Statement of Cash Flows