# Arnold Davis decides to incorporate a business operating a pizza parlor and opens Pop’s Pizza Company near a local college campus.

Arnold Davis decides to incorporate a business operating a pizza parlor and opens Pop’s Pizza Company near a local college campus. The company uses accrual accounting and issues monthly financial statements.

Part I (10 points)

To attract stockholders, Pop’s Pizza Company develops a marketing campaign that offers students a discount for purchasing stock in the company. Management believes that since the company serves mainly college students, students will purchase more pizza from Pop’s Pizza Parlor if they have an ownership interest in the business. Many students purchasing stock in the company have student loans and work to pay college tuition. You are hired to advise Pop’s Pizza Company on whether it is appropriate to offer discounted shares of stock to students with college loans. Use the problem-solving model to answer the following question. Should Pop’s Pizza Company offer discounted shares of stock to students with college loans?

Part II (25 points, 2 points per entry and 5 points for using an Excel spreadsheet)

During January 2018, Pop’s Pizza Company’s records reveal the following events. Use an Excel spreadsheet to record these events using tabular analysis. Show how each event affects the balance sheet equation. If there is no effect on the balance sheet equation, state “No entry needed.”

Transactions

Jan. 1Purchased equipment for \$4,000 paying \$2,000 in cash and signed a 2%, 8-month note for the balance.

Jan. 5 Ordered \$1,000 of kitchen supplies.

Jan. 8Advertised in the campus newspaper and received a bill from the newspaper for \$50.

Jan. 10Received \$100 cash for a pizza order. The ordered pizza will be delivered on February 1.

Jan. 12Received \$1,500 in cash from customers for pizza sales.

Jan. 15Paid \$200 cash to student workers for January salaries.

Jan. 20Billed the Blugold Football Team \$300 for delivered pizzas.

Jan. 25Paid \$100 cash to the radio station for advertising that was previously billed on January 10.

Jan. 30Paid cash dividends of \$1,200.

Jan. 31Purchased a \$2,000 pizza oven on account.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.