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