i have partially answered please complete the answer Balance Sheet The balance sheet provides a snapshot of the financial condition of a company at the end of an accounting period. It shows the assets, liabilities, and owner’s equity in the business. Identify each of the following as an asset (A), contra asset (C), liability (L), or equity (E). Item Category Cash A Depreciation C Equipment A Inventory A Loans L Item Category Paid-in Capital E Prepaid Insurance A Retained Earnings E Taxes Owed L Utility Deposit A   In early December, Alice and Bob decided to open the Sample Café with $15,000 of their own money and $20,000 borrowed from a friend. They have spent $12,000 on equipment and furniture, and they have purchased $3,000 worth of inventory. Having put down a $2,500 deposit for a location on Main St., they will pay the first month’s rent when they open their doors on January 1st. Create a balance sheet showing the financial position of the Sample Café as of December 31st. Item Value Note Total Equity? 35,000 $15,000 own capital and 20,000 Loan from a friend Equipment and furniture $12,000 Equipment and furniture Inventory $3,000 Inventory Rent Deposit $2,500 Rent Deposit Total Expenses $17,500 Net equity? $17,500 The Sample Café nearly broke even in the first month of business. Below is a summary of revenue and expenses for January. Starting with the balance sheet from December 31st, use the results to create an updated balance sheet for January 31st. What is the book value of the equipment at the end of January? Alice and Bob had a small loss for the month. What happened to cash? Explain. Sample Café Income Statement Summary  Month Ended January 31, 20xx Item Value Note Revenue $30,000 n/a Cost of Goods Sold (COGS) $3,500 $1,000 from inventory. Total Expenses $27,000 Includes equipment depreciation of $200. Net Income ($500) n/a

i have partially answered please complete the answer Balance Sheet The balance sheet provides a snapshot of the financial condition of a company at the end of an accounting period. It shows the assets, liabilities, and owner’s equity in the business. Identify each of the following as an asset (A), contra asset (C), liability (L), or equity (E). Item Category Cash A Depreciation C Equipment A Inventory A Loans L Item Category Paid-in Capital E Prepaid Insurance A Retained Earnings E Taxes Owed L Utility Deposit A   In early December, Alice and Bob decided to open the Sample Café with $15,000 of their own money and $20,000 borrowed from a friend. They have spent $12,000 on equipment and furniture, and they have purchased $3,000 worth of inventory. Having put down a $2,500 deposit for a location on Main St., they will pay the first month’s rent when they open their doors on January 1st. Create a balance sheet showing the financial position of the Sample Café as of December 31st. Item Value Note Total Equity? 35,000 $15,000 own capital and 20,000 Loan from a friend Equipment and furniture $12,000 Equipment and furniture Inventory $3,000 Inventory Rent Deposit $2,500 Rent Deposit Total Expenses $17,500 Net equity? $17,500 The Sample Café nearly broke even in the first month of business. Below is a summary of revenue and expenses for January. Starting with the balance sheet from December 31st, use the results to create an updated balance sheet for January 31st. What is the book value of the equipment at the end of January? Alice and Bob had a small loss for the month. What happened to cash? Explain. Sample Café Income Statement Summary  Month Ended January 31, 20xx Item Value Note Revenue $30,000 n/a Cost of Goods Sold (COGS) $3,500 $1,000 from inventory. Total Expenses $27,000 Includes equipment depreciation of $200. Net Income ($500) n/a

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 4RQSC

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i have partially answered please complete the answer

Balance Sheet

The balance sheet provides a snapshot of the financial condition of a company at the end of an accounting period. It shows the assets, liabilities, and owner’s equity in the business.

Identify each of the following as an asset (A), contra asset (C), liability (L), or equity (E).

Item	Category
Cash	A
Depreciation	C
Equipment	A
Inventory	A
Loans	L

Item	Category
Paid-in Capital	E
Prepaid Insurance	A
Retained Earnings	E
Taxes Owed	L
Utility Deposit	A

In early December, Alice and Bob decided to open the Sample Café with $15,000 of their own money and $20,000 borrowed from a friend. They have spent $12,000 on equipment and furniture, and they have purchased $3,000 worth of inventory. Having put down a $2,500 deposit for a location on Main St., they will pay the first month’s rent when they open their doors on January 1st. Create a balance sheet showing the financial position of the Sample Café as of December 31st.

Item	Value	Note
Total Equity?	35,000	$15,000 own capital and 20,000 Loan from a friend
Equipment and furniture	$12,000	Equipment and furniture
Inventory	$3,000	Inventory
Rent Deposit	$2,500	Rent Deposit
Total Expenses	$17,500
Net equity?	$17,500

The Sample Café nearly broke even in the first month of business. Below is a summary of revenue and expenses for January. Starting with the balance sheet from December 31st, use the results to create an updated balance sheet for January 31st.
What is the book value of the equipment at the end of January?
Alice and Bob had a small loss for the month. What happened to cash? Explain.

Sample Café Income Statement Summary 

Month Ended January 31, 20xx

Item	Value	Note
Revenue	$30,000	n/a
Cost of Goods Sold (COGS)	$3,500	$1,000 from inventory.
Total Expenses	$27,000	Includes equipment depreciation of $200.
Net Income	($500)	n/a

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