In early December Alice and Bob decided to open Sample Cafe with $14,000 of their...
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Accounting
In early December Alice and Bob decided to open Sample Cafe with $14,000 of their own money and $21,000 borrowed from a friend. They have spent $11,000 on equipment and furniture, and they have purchased $3,300 worth of cups for cash which they expect will be used over the next three months. Having put down a $2,700 deposit for a location on Main St., they will pay the first months 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 $ 8000 Accounts Payable $ 0 Accounts Receivable $ 0 Long-Term Liabilities $ 21000 Inventory $ 3300 Total Liabilities $ 21000 Furniture & Equipment 11000 n/a n/a Accumulated Depreciation* 0 Paid-in Capital $ 0 Deposit $ 2700 n/a n/a Total Assets 25000 Total Liabilities & Equity $ 0 * Input Accumulated Depreciation as a negative value
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