Bakers Bread Shop was established on 1 April 2019 with an initial investment of $100 000 by
Question:
Baker’s Bread Shop was established on 1 April 2019 with an initial investment of $100 000 by the owner. During the first few weeks of business, the owner employed a part-time accountant (with only a few months experience) who recorded the following list of assets.
Required
(a) Assuming that the amounts above are correct, prepare a corrected balance sheet in narrative form.
(b) Determine the amount of profit (loss) made by the business during the period of its first few weeks of existence, assuming that the owner had invested an additional $20 000 into the business just before the above amounts were calculated by the accountant.
(c) Prepare a statement of changes in equity for the period.
Step by Step Answer:
Financial Accounting
ISBN: 9780730363217
10th Edition
Authors: John Hoggett, John Medlin, Keryn Chalmers, Claire Beattie, Andreas Hellmann, Jodie Maxfield