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Can someone help with this question? I need help on the income statement and statement of cash flow. The balance sheet items of The Soda
Can someone help with this question? I need help on the income statement and statement of cash flow.
The balance sheet items of The Soda Shop (arranged in alphabetical order) were as follows at the close of business on September 30, 2015 Furniture and Fixtures 20,000 5,500 4,090 3.440 7.400 The transactions occurring during the first week of October were as follows Oct.3 Additional capital stock was sold for $30,000. The accounts payable were paid in full Oct. 6 More furniture was purchased on account at a cost of $18,000, to be paid within 30 (No payment was made on the notes payable.) days. Supplies were purchased for $1,000 cash from a restaurant supply center that was going out of business. These supplies would have cost $1,875 if purchased under normal circumstances Revenues of $5,500 were earned and received in cash. Expenses required to earn the revenues of $4,000 were incurred and paid in cash. Oct. 1-6 Instructions a. Prepare a balance sheet at September 30, 2015. (You will need to compute the missing figure for Notes Payable.) b. Prepare a balance sheet at October 6, 2015. Also prepare an income statement and a statement of cash flows for the period October 1-6, 2015. In your statement of cash flows, treat the purchase of supplies and the payment of accounts payable as operating activities c. Assume the notes payable do not come due for several years. Is The Soda Shop in a stronger financial position on September 30 or on October 6 Explain brieflyStep by Step Solution
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