E2-14A. (Learning Objective 1: Analyzing transactions) Assume M. Crew opened a store in Hong Kong, starting with cash and ordinary shares of $81,000. Melissa Lim, the store manager, then signed a note payable to purchase land for $75,000 and a building for $101,000. Lim also paid $60,000 for equipment and $7,000 for supplies to use in the business.

Suppose the home office of M. Crew requires a weekly report from store managers. Write Lim’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.