Party Town (PT) is holding a Halloween party and charging the guests an admission fee of $20 per

person. PT has rented a banquet hall for $500 and the hall will accommodate up to 100 people. PT has

contracted with Cathys Catering to cater the party for $10 per person that attends (up to 100). The

party will occur on October 30, 2016 and is the only event scheduled for the quarter from October 1,

2022 to December 31, 2022 (fourth quarter of 2022).

Additional Information:

On October 1, 2022, PTs balance sheet is expected to be as follows:

Cash $1,000

Party equipment $100

Bank loan $50

Equity, $1,050

The depreciation on the party equipment for the three months ended December 31, 2022 was expected

to be $5.

At the party, it is estimated that 90% of the guests will pay at the door in cash and 10% will pay on

January 30, 2023. The estimated party guests are 75.

Cathys Catering should be paid half their fee (Cathy requires the estimate to be the max of 100 people)

on October 1, 2022 and the balance will be paid on January 15, 2023.

The banquet hall should be paid in full on October 21, 2022.

Cash principal payments on the bank loan on December 31, 2022 will be $5. Interest on the loan will be

15% and will be paid in cash.

1: Party Town

Budgeted Income Statement for the Quarter Ended December 31, 2022

2: Party Town

Cash Flow Budget for the Quarter Ended December 31, 2022

3: Party Town

Balance Sheet Budget as of December 31, 2022