Question 2 In early December, Alice and Bob decided to open Sample Cafe with $14,000 of their own money and $19,000 borrowed from a friend. They have spent $11,000 on equipment and furniture, and they have purchased $2,800 worth of cups for cash which they expect will be used over the next three months. Having put down a $2,400 deposit for a location on Main St., they will pay the first month’s rent when they open their doors on January 1. In the balance sheet template below, fill in the appropriate values as of December 31. | Asset Account | Value | Liability/Equity Account | Value | |---------------------------|-------|----------------------------|-------| | Cash | $0 | Accounts Payable | $0 | | Accounts Receivable | $0 | Long-Term Liabilities | $0 | | Inventory | $0 | Total Liabilities | $0 | | Furniture & Equipment | $0 | n/a | n/a | | Accumulated Depreciation* | $0 | Paid-in Capital | $0 | | Deposit | $0 | n/a | n/a | | Total Assets | $0 | Total Liabilities & Equity | $0 | *Input Accumulated Depreciation as a negative value.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

In early December Alice and Bob decided to open Sample Cafe with $14,000 of their own money and $19,000 borrowed from a friend. They have spent $11,000 on equipment and furniture, and they have purchased $2,800 worth of cups for cash which they expect will be used over the next three months. Having put down a $2,400 deposit for a location on Main St., they will pay the first month’s rent when they open their doors on January 1.

In the balance sheet template below, fill in the appropriate values as of December 31.

**Question 2**

In early December, Alice and Bob decided to open Sample Cafe with $14,000 of their own money and $19,000 borrowed from a friend. They have spent $11,000 on equipment and furniture, and they have purchased $2,800 worth of cups for cash which they expect will be used over the next three months. Having put down a $2,400 deposit for a location on Main St., they will pay the first month’s rent when they open their doors on January 1.

In the balance sheet template below, fill in the appropriate values as of December 31.

| Asset Account | Value | Liability/Equity Account | Value |
|---------------------------|-------|----------------------------|-------|
| Cash | $0 | Accounts Payable | $0 |
| Accounts Receivable | $0 | Long-Term Liabilities | $0 |
| Inventory | $0 | Total Liabilities | $0 |
| Furniture & Equipment | $0 | n/a | n/a |
| Accumulated Depreciation* | $0 | Paid-in Capital | $0 |
| Deposit | $0 | n/a | n/a |
| Total Assets | $0 | Total Liabilities & Equity | $0 |

*Input Accumulated Depreciation as a negative value.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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