Assume Casual Wear opened a store in San Francisco, starting with cash and common stock of $98,000.

Question:

Assume Casual Wear opened a store in San Francisco, starting with cash and common stock of $98,000. Nicole Marchildon, the store manager, then signed a note payable to purchase land for $94,000 and a building for $122,000. Marchildon also paid $58,000 for equipment and $15,000 for supplies to use in the business.

Suppose the home office of Casual Wear requires a weekly report from store managers. Write Marchildon’s memo to the home office to report on her purchases. Include the store’s balance sheet as the final part of your memo. Prepare a T-account to compute the balance for Cash.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...