Types of business organizations and balance sheet preparation

(Learning Objectives 5 & 6) 10–15 min.

The following are the balances of the assets, liabilities, and equity of Julie’s Coffee Shop at October 31, 2014:

$19,000 12,550 800 1,400 Cash.........................................

Retained Earnings ....................

Accounts Payable.....................

Accounts Receivable ................

$14,200 18,000 4,000 750 Office Equipment........................

Common Stock ..........................

Note Payable ..............................

Supplies .....................................

Requirements 1. What type of business organization is Julie’s Coffee Shop?

2. Prepare the balance sheet of the business at October 31, 2014.

3. What does the balance sheet report?

AppendixLO1