During Financial Statements, Effects of Business Transactions The balance sheet items of The Soda Shop (arranged in alphabetical order) follows at the close of business on September 30, 2015: occurring during the first week of October were: Oct. 3 Additional capital stock was sold for $30,000. The accounts payable paid in full. (No payment was made on the notes payable.) Oct. 6 More furniture was purchased on account at a cost of $18,000, to be within 30 days. Supplies were purchased for $1,000 cash from a rest supply center that was going out of business. These supplies would cost $1.875 if purchased under normal circumstances. Oct. 1-6 Revenues of $5, 500 were earned and received in cash. Expenses earn the revenues of $4,000 were incurred and paid in cash. Instructions a. Prepare a balance sheet at September 30, 2015. (You will need to compute missing figure for Notes Payable.) b. Prepare a balance sheet at October 6, 2015. Also prepare an income statement a statement of cash flows for the period October 1-6, 2015. In your statement cash flows, treat the purchase of supplies and the payment of accounts payable cash flows, treat the purchase of supplies and the payment of accounts payable operating activities. c. Assume the notes payable do not come due for several years. Is The Soda a stronger financial position on September 30 or on October 6? Explain brief During Financial Statements, Effects of Business Transactions The balance sheet items of The Soda Shop (arranged in alphabetical order) follows at the close of business on September 30, 2015: occurring during the first week of October were: Oct. 3 Additional capital stock was sold for $30,000. The accounts payable paid in full. (No payment was made on the notes payable.) Oct. 6 More furniture was purchased on account at a cost of $18,000, to be within 30 days. Supplies were purchased for $1,000 cash from a rest supply center that was going out of business. These supplies would cost $1.875 if purchased under normal circumstances. Oct. 1-6 Revenues of $5, 500 were earned and received in cash. Expenses earn the revenues of $4,000 were incurred and paid in cash. Instructions a. Prepare a balance sheet at September 30, 2015. (You will need to compute missing figure for Notes Payable.) b. Prepare a balance sheet at October 6, 2015. Also prepare an income statement a statement of cash flows for the period October 1-6, 2015. In your statement cash flows, treat the purchase of supplies and the payment of accounts payable cash flows, treat the purchase of supplies and the payment of accounts payable operating activities. c. Assume the notes payable do not come due for several years. Is The Soda a stronger financial position on September 30 or on October 6? Explain brief