9. Utilities Paid - Pays $800 for electricity, water, and internet bills. 10. Loan Repayment (Partial) - Pays $2,000 toward the bank loan. 11. Supplier Payment - Pays $3,000 to suppliers for previous credit purchases. 12. Advertising Expense - Spends $1,200 on digital marketing and flyers. 13. Depreciation on Equipment - Records depreciation of $500 on the espresso machine and furniture. 14. Customer Payment Received - A corporate client pays $2,000 toward their outstanding balance. 15. Owner Withdraws Cash - Sarah withdraws $1,500 from the business for personal use. Sarah is starting a small coffee shop called Sarah's Coffee Corner. She invests her savings, buys equipment, and starts operations. Below are 15 transactions from her first month of business. Transactions: 1. Owner Invests Capital - Sarah deposits $30,000 into a business bank account as her initial investment. 2. Business Loan Received - She secures a $20,000 bank loan to finance her startup. 3. Lease Payment for Shop - She pays $3,000 as the first month's rent for her café space. 4. Purchase of Equipment - Buys an espresso machine and furniture for $12,000, paying $7,000 in cash and the rest on credit. 5. Purchase of Initial Inventory - Buys coffee beans, milk, sugar, and other supplies for $5,000 on credit. 6. Hiring Employees - Pays $4,500 in salaries for the first month to baristas. 7. Opening Day Sales (Cash) - Earns $8,000 from cash sales on the first week of operations. 8. Credit Sales to Customers - Sells coffee and snacks worth $3,500 on credit to corporate clients.
9. Utilities Paid - Pays $800 for electricity, water, and internet bills. 10. Loan Repayment (Partial) - Pays $2,000 toward the bank loan. 11. Supplier Payment - Pays $3,000 to suppliers for previous credit purchases. 12. Advertising Expense - Spends $1,200 on digital marketing and flyers. 13. Depreciation on Equipment - Records depreciation of $500 on the espresso machine and furniture. 14. Customer Payment Received - A corporate client pays $2,000 toward their outstanding balance. 15. Owner Withdraws Cash - Sarah withdraws $1,500 from the business for personal use. Sarah is starting a small coffee shop called Sarah's Coffee Corner. She invests her savings, buys equipment, and starts operations. Below are 15 transactions from her first month of business. Transactions: 1. Owner Invests Capital - Sarah deposits $30,000 into a business bank account as her initial investment. 2. Business Loan Received - She secures a $20,000 bank loan to finance her startup. 3. Lease Payment for Shop - She pays $3,000 as the first month's rent for her café space. 4. Purchase of Equipment - Buys an espresso machine and furniture for $12,000, paying $7,000 in cash and the rest on credit. 5. Purchase of Initial Inventory - Buys coffee beans, milk, sugar, and other supplies for $5,000 on credit. 6. Hiring Employees - Pays $4,500 in salaries for the first month to baristas. 7. Opening Day Sales (Cash) - Earns $8,000 from cash sales on the first week of operations. 8. Credit Sales to Customers - Sells coffee and snacks worth $3,500 on credit to corporate clients.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4MC: A car dealership sells a car to a customer for $35,000. The customer makes a 10% down payment, and...
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Transcribed Image Text:9. Utilities Paid - Pays $800 for electricity, water, and internet bills.
10. Loan Repayment (Partial) - Pays $2,000 toward the bank loan.
11. Supplier Payment - Pays $3,000 to suppliers for previous credit purchases.
12. Advertising Expense - Spends $1,200 on digital marketing and flyers.
13. Depreciation on Equipment - Records depreciation of $500 on the espresso machine and furniture.
14. Customer Payment Received - A corporate client pays $2,000 toward their outstanding balance.
15. Owner Withdraws Cash - Sarah withdraws $1,500 from the business for personal use.
Transcribed Image Text:Sarah is starting a small coffee shop called Sarah's Coffee Corner. She invests her savings, buys equipment, and starts
operations. Below are 15 transactions from her first month of business.
Transactions:
1. Owner Invests Capital - Sarah deposits $30,000 into a business bank account as her initial investment.
2. Business Loan Received - She secures a $20,000 bank loan to finance her startup.
3. Lease Payment for Shop - She pays $3,000 as the first month's rent for her café space.
4. Purchase of Equipment - Buys an espresso machine and furniture for $12,000, paying $7,000 in cash and the rest
on credit.
5. Purchase of Initial Inventory - Buys coffee beans, milk, sugar, and other supplies for $5,000 on credit.
6. Hiring Employees - Pays $4,500 in salaries for the first month to baristas.
7. Opening Day Sales (Cash) - Earns $8,000 from cash sales on the first week of operations.
8. Credit Sales to Customers - Sells coffee and snacks worth $3,500 on credit to corporate clients.
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