n early December Alice and Bob decided to open Sample Cafe with $16,000 of their own money and $20,000 borrowed from a friend. They have spent $13,000 on equipment and furniture, and they have purchased $3,200 worth of cups for cash which they expect will be used over the next three months. Having put down a $2,300 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.
n early December Alice and Bob decided to open Sample Cafe with $16,000 of their own money and $20,000 borrowed from a friend. They have spent $13,000 on equipment and furniture, and they have purchased $3,200 worth of cups for cash which they expect will be used over the next three months. Having put down a $2,300 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
In early December Alice and Bob decided to open Sample Cafe with $16,000 of their own
money and $20,000 borrowed from a friend. They have spent $13,000 on equipment and
furniture, and they have purchased $3,200 worth of cups for cash which they expect will be
used over the next three months. Having put down a $2,300 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
Transcribed Image Text:In early December Alice and Bob decided to open Sample Cafe with $16,000 of their own
money and $20,000 borrowed from a friend. They have spent $13,000 on equipment and
furniture, and they have purchased $3,200 worth of cups for cash which they expect will be
used over the next three months. Having put down a $2,300 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
Cash
Accounts
Receivable
Inventory
$
Deposit
$
Furniture & $
Equipment
$
Accumulated $
Depreciation*
Total Assets
$
Value
$
Liability/Equity
Account
Accounts
Payable
Long-Term
Liabilities
Total Liabilities
n/a
Paid-in Capital
Total Liabilities
& Equity
* Input Accumulated Depreciation as a negative value.
n/a
$
$
n/a
$
n/a
$
Value
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education