E2-25B. (Learning Objective 1: Analyzing transactions) Assume T. Crew opened a store in Frankfurt, Germany, starting with cash and ordinary shares of €85,000. Barbara Breen, the store manager, then signed a note payable to purchase land for €87,000 and a building for €123,000.

Breen also paid €59,000 for equipment and €12,000 for supplies to use in the business.

Suppose the home office of T. Crew requires a weekly report from store managers. Write Breen’s memo to the head 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.