Accounting Case
The balance sheet items of The Sweet Soda Shop (arranged in alphabetical order) were as follows at the close of business on September 30, 2011: Accounts Payable Accounts Receivable Building Capital Stock Cash $ 8,500 1,250 45,500 50,000 7,400 Furniture and Fixtures Land Notes Payable Retained Earnings Supplies 20,000 $ 55,000 ? 4,090 3,440
The transactions occurring during the first week of October were: Oct. 3 Additional capital stock was sold for $30,000. The accounts payable were paid in full. (No payment was made on the notes payable.) Oct. 6 More furniture was purchased on account at a cost of $18,000, to be paid within 30 days. Supplies were purchased for $1,000 cash from a restaurant supply center that was going out of business. These supplies would have cost $1,875 if purchased under normal circumstances. Oct. 1–6 Revenues of $5,500 were earned and paid in cash. Expenses required to earn the revenues of $4,000 were incurred and paid in cash. a. Prepare a balance sheet at September 30, 2011. (You will need to compute the missing figure for Notes Payable). (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) THE SWEET SODA SHOP Balance Sheet September 30, 2011 Assets Cash Accounts receivable Building Furniture and fixtures Land Supplies Total Liabilities & Owners ' Equity Liabilities: Notes payable Accounts payable Total Liabilities Owners ' equity: Capital stock Retained earnings Total $ 7,400 1,250 45,500 20,000 55,000 3,440 $ 132,590
$ 70,000 8,500 $ 78,500 50,000 4,090 $ 132,590
b(1)Prepare a balance sheet at October 6, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) THE SWEET SODA SHOP Balance Sheet October 6, 2011 Assets Cash Accounts receivable Building Furniture and fixtures Land Supplies Total Liabilities & Owners ' Equity Liabilities: Notes payable Accounts payable Total Liabilities Owners ' equity: Capital stock
The transactions occurring during the first week of October were: Oct. 3 Additional capital stock was sold for $30,000. The accounts payable were paid in full. (No payment was made on the notes payable.) Oct. 6 More furniture was purchased on account at a cost of $18,000, to be paid within 30 days. Supplies were purchased for $1,000 cash from a restaurant supply center that was going out of business. These supplies would have cost $1,875 if purchased under normal circumstances. Oct. 1–6 Revenues of $5,500 were earned and paid in cash. Expenses required to earn the revenues of $4,000 were incurred and paid in cash. a. Prepare a balance sheet at September 30, 2011. (You will need to compute the missing figure for Notes Payable). (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) THE SWEET SODA SHOP Balance Sheet September 30, 2011 Assets Cash Accounts receivable Building Furniture and fixtures Land Supplies Total Liabilities & Owners ' Equity Liabilities: Notes payable Accounts payable Total Liabilities Owners ' equity: Capital stock Retained earnings Total $ 7,400 1,250 45,500 20,000 55,000 3,440 $ 132,590
$ 70,000 8,500 $ 78,500 50,000 4,090 $ 132,590
b(1)Prepare a balance sheet at October 6, 2011. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) THE SWEET SODA SHOP Balance Sheet October 6, 2011 Assets Cash Accounts receivable Building Furniture and fixtures Land Supplies Total Liabilities & Owners ' Equity Liabilities: Notes payable Accounts payable Total Liabilities Owners ' equity: Capital stock
Links: 70,000 18,000 88,000 80,000 5,590 173,590 b(2)Prepare an income statement and a statement of cash flows for the period October 1–6, 2011 12-9-9 Increase in cash Cash balance, October 1, 2011 Cash balance, October 6, 2011