,000 and a building for $130,000. The store also paid $50,000 for store fixtures and $40,000 for inventory to use in the business. All these were paid for in cash. The Gap’s head office requires store managers to provide a weekly report that summarizes and discusses the details of the store’s financial position and how it has changed since the previous report. Susan has asked for your help with this request. Prepare the report for h

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Gap has opened a new store in Ottawa, investing $100,000 in cash in return for common shares of the new company that will operate the store. Susan Harper is the store’s manager. During the first week of operations, Harper signed a note payable to purchase land for $40,000 and a building for $130,000. The store also paid $50,000 for store fixtures and $40,000 for inventory to use in the business. All these were paid for in cash.

The Gap’s head office requires store managers to provide a weekly report that summarizes and discusses the details of the store’s financial position and how it has changed since the previous report. Susan has asked for your help with this request. Prepare the report for head office (assume all events above took place in the first week of operations).

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