**Mystic Pizza Company - General Ledger Overview****Assets:**- 111: Cash- 121: Accounts Receivable- 141: Inventory- 152: Prepaid Insurance- 181: Equipment- 189: Accumulated Depreciation- 193: Franchise**Liabilities:**- 211: Accounts Payable- 231: Salaries Payable- 250: Unearned Revenue- 261: Income Taxes Payable**Equity:**- 311: Common Stock- 331: Retained Earnings**Revenue:**- 411: Sales Revenue**Expenses:**- 500: Cost of Goods Sold- 511: Insurance Expense- 512: Utilities Expense- 521: Salaries Expense- 532: Bad Debt Expense- 533: Amortization Expense- 540: Interest Expense- 541: Depreciation Expense- 559: Miscellaneous Expenses- 910: Income Tax ExpenseThis general ledger layout provides a structured view of the financial accounts for the Mystic Pizza Company, categorized under Assets, Liabilities, Equity, Revenue, and Expenses. Each category is subdivided into specific accounts, identified by unique numbers for easy reference. **Franchise Costs Educational Exercise****Instructions:**Mystic Pizza Company purchases a franchise from NY Pizzeria Inc. for $96,000 on June 1, 2019. The franchise will last 8 years.**Required:**- Record Mystic Pizza's purchase of the franchise on June 1.- Record the adjusting entry at the end of 2019.**Interface Description:**- **Sections Navigation:** On the left, tasks are listed, ranging from general tasks (e.g., MC, RE) to specific categories like BLANKSHEET.- **Tabs Present:** Options for "Instructions," "Chart of Accounts," and "General Journal" are visible for further accounting entries. This exercise requires understanding of franchise amortization and adjustment entries at year-end.

Name: **Mystic Pizza Company - General Ledger Overview****Assets:**- 111: C
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Description: **Mystic Pizza Company - General Ledger Overview****Assets:**- 111: Cash- 121: Accounts Receivable- 141: Inventory- 152: Prepaid Insurance- 181: Equipment- 189: Accumulated Depreciation- 193: Franchise**Liabilities:**- 211: Accounts Payable- 231: Sa

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Mystic Pizza Company purchases a franchise from NY Pizzeria Inc. for $96,000 on June 1, 2019. The franchise will last 8 years. Required: Record Mystic Pizza's purchase of the franchise on June 1 and adjusting entry at the end of 2019.

Mystic Pizza Company purchases a franchise from NY Pizzeria Inc. for $96,000 on June 1, 2019. The franchise will last 8 years. Required: Record Mystic Pizza's purchase of the franchise on June 1 and adjusting entry at the end of 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

Topic Video

Question

**Mystic Pizza Company - General Ledger Overview**

**Assets:**
- 111: Cash
- 121: Accounts Receivable
- 141: Inventory
- 152: Prepaid Insurance
- 181: Equipment
- 189: Accumulated Depreciation
- 193: Franchise

**Liabilities:**
- 211: Accounts Payable
- 231: Salaries Payable
- 250: Unearned Revenue
- 261: Income Taxes Payable

**Equity:**
- 311: Common Stock
- 331: Retained Earnings

**Revenue:**
- 411: Sales Revenue

**Expenses:**
- 500: Cost of Goods Sold
- 511: Insurance Expense
- 512: Utilities Expense
- 521: Salaries Expense
- 532: Bad Debt Expense
- 533: Amortization Expense
- 540: Interest Expense
- 541: Depreciation Expense
- 559: Miscellaneous Expenses
- 910: Income Tax Expense

This general ledger layout provides a structured view of the financial accounts for the Mystic Pizza Company, categorized under Assets, Liabilities, Equity, Revenue, and Expenses. Each category is subdivided into specific accounts, identified by unique numbers for easy reference.

**Franchise Costs Educational Exercise**

**Instructions:**

Mystic Pizza Company purchases a franchise from NY Pizzeria Inc. for $96,000 on June 1, 2019. The franchise will last 8 years.

**Required:**

- Record Mystic Pizza's purchase of the franchise on June 1.
- Record the adjusting entry at the end of 2019.

**Interface Description:**

- **Sections Navigation:** On the left, tasks are listed, ranging from general tasks (e.g., MC, RE) to specific categories like BLANKSHEET.
- **Tabs Present:** Options for "Instructions," "Chart of Accounts," and "General Journal" are visible for further accounting entries.

This exercise requires understanding of franchise amortization and adjustment entries at year-end.

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