Charlie Driver has $30,000 saved and has decided to attend college, taking courses in marketing and retailing. To help pay his tuition and living expenses, he contracted with a mobile catering company as an independent driver. Charlie will run his mobile catering business on a cash basis; he has named his business Charlie's Convenient Catering, or the 3C Company for short. He opened a company bank account with $30,000. He bought a used, fully equipped mobile catering truck for $26,000, and operated from January 4 to December 31, 2020. At the end of the year, Charlie had $26,010 in the bank and $148 in a cash drawer. Invoices show he purchased food, beverages, and supplies inventories for $15 296: anding inventory remaining on the truck was $250
Charlie Driver has $30,000 saved and has decided to attend college, taking courses in marketing and retailing. To help pay his tuition and living expenses, he contracted with a mobile catering company as an independent driver. Charlie will run his mobile catering business on a cash basis; he has named his business Charlie's Convenient Catering, or the 3C Company for short. He opened a company bank account with $30,000. He bought a used, fully equipped mobile catering truck for $26,000, and operated from January 4 to December 31, 2020. At the end of the year, Charlie had $26,010 in the bank and $148 in a cash drawer. Invoices show he purchased food, beverages, and supplies inventories for $15 296: anding inventory remaining on the truck was $250
Chapter7: Losses—deductions And Limitations
Section: Chapter Questions
Problem 20P: Carlos opens a dry cleaning store during the year. He invests 30,000 of his own money and borrows...
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![Charlie Driver has $30,000 saved and has decided to attend college, taking
courses in marketing and retailing. To help pay his tuition and living
expenses, he contracted with a mobile catering company as an independent
driver. Charlie will run his mobile catering business on a cash basis; he has
named his business Charlie's Convenient Catering, or the 3C Company for
short. He opened a company bank account with $30,000. He bought a used,
fully equipped mobile
catering truck for $26,000, and operated from January 4 to December 31,
2020. At the end of the year, Charlie had $26,010 in the bank and $148 in a
cash drawer. Invoices show he purchased food, beverages, and supplies
inventories for $45,296; ending inventory remaining on the truck was $350.
His invoices for truck operating expenses total $3,828 paid, and he has one
unpaid truck repair invoice for $254. Charlie withdrew $2,000 a month for
personal expenses. The truck has a five-year life and no residual value, and
straight-line depreciation is to be used.
Charlie asks you to help him put together his business information and
reconstruct his cash sales. He recorded his daily cash sales in a notebook
that cannot be found.
1. Calculate 3C Company's revenue
2. Prepare an accrual income statement.
3. Prepare a balance sheet.
4. Charlie is concerned that he has less cash now than he had when he
started. Explain why](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ab5a315-ac91-4016-9f01-63eee514f78d%2Fcc631c60-7bb9-44c5-b3c3-35c1a5e3e737%2F640maci_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Charlie Driver has $30,000 saved and has decided to attend college, taking
courses in marketing and retailing. To help pay his tuition and living
expenses, he contracted with a mobile catering company as an independent
driver. Charlie will run his mobile catering business on a cash basis; he has
named his business Charlie's Convenient Catering, or the 3C Company for
short. He opened a company bank account with $30,000. He bought a used,
fully equipped mobile
catering truck for $26,000, and operated from January 4 to December 31,
2020. At the end of the year, Charlie had $26,010 in the bank and $148 in a
cash drawer. Invoices show he purchased food, beverages, and supplies
inventories for $45,296; ending inventory remaining on the truck was $350.
His invoices for truck operating expenses total $3,828 paid, and he has one
unpaid truck repair invoice for $254. Charlie withdrew $2,000 a month for
personal expenses. The truck has a five-year life and no residual value, and
straight-line depreciation is to be used.
Charlie asks you to help him put together his business information and
reconstruct his cash sales. He recorded his daily cash sales in a notebook
that cannot be found.
1. Calculate 3C Company's revenue
2. Prepare an accrual income statement.
3. Prepare a balance sheet.
4. Charlie is concerned that he has less cash now than he had when he
started. Explain why
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