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Balance Sheet The balance sheet provides a snapshot of the financial condition of a company at the end of an accounting period. It shows the assets, liabilities, and owner's equity in the business. asset (A), contra asset (C), liability (L), or 1. Identify each of the following as an equity (E) Category Item Item Category Paid-in Capital Cash Prepaid Insurance Depreciation Retained Earnings Equipment Taxes Owed Inventory Utility Deposit Loans 2. In early December, Alice and Bob decided to open the Sample Cafe with $15,000 of their own money and $20,000 borrowed from a friend. They have spent $12,000 on equipment and furniture, and they have purchased $3,000 worth of inventory. Having put down a $2,500 deposit for a location on Main St., they will pay the first month's rent when they open their doors on January 1 Create a balance sheet showing the financial position of the Sample Cafe as of December 31st . The Sample Cafe nearly broke even in the first month of business. Below is a summary of revenue and expenses for January. Starting with the balance sheet from December 31, use the results to create an updated balance sheet for January 31st Sample Cafe Income Statement Summary Month Ended January 31, 20xx Note Value Item $30,000 n/a $3,500 $1,000 from inventory. $27,000 Includes equipment depreciation of $200 ($500) n/a Revenue Cost of Goods Sold Total Expenses Net Income ovt nnao