Problem 2.8A (Static) Preparing Financial Statements; Effects of Business Transactions (LO2-4, LO2-5, LO2-6) The balance sheet items of The Soda Shop (arranged in alphabetical order) were as follows at the close of business on September 30 2021. Accounts payable Accounts receivable Building Capital stock Cash $ 8,500 1,250 45,500 50,000 7,400 Furniture and Fixtures Land Notes payable Retained earnings Supplies $ 20,000 55,000 2 4,090 3,440 The transactions occurring during the first week of October were as follows. Oct.) Additional capital stock was sold for $30,000. The accounts payable were 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 paid within 30 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 Oct. 1. Revenues of $5,500 were earned and received in cash Expenses required to earn the revenues of $4,000 were incurred and paid 6 In cash Required: a. Prepare a balance sheet at September 30, 2021 (You will need to compute the missing figure for Notes Payable.) b-1. Prepare a balance sheet at October 6, 2021, b-2. Prepare an income statement for the period October 1-6, 2021. b-3. Prepare a statement of cash flows for the period October 1-6, 2021. 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 an einer 67 ReqA Req B1 Req B2 Req B3 Reg C Prepare a statement of cash flows for the period October 1-6, 2021. (List any deduction in cash and cash outflows with minus sign.) THE SODA SHOP Statement of Cash Flows For the Period October 1-6, 2021 Cash flows from operating activities S 0 Cash flows from investing activities S 0 Cash flows from financing activities 0 S 0 Cash balance, October 1, current year Cach honen har en in in c. Assume the notes payable do not come due for several years. Is The Soda Shop in a stronger tinand on October 6? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3 Reqc Prepare an income statement for the period October 1-6, 2021. THE SODA SHOP Income Statement For the Period October 1-6, 2021 0 Complete this question by entering your answers in the tabs below. Req A Reg B1 Req B2 Req B3 Reg C Prepare a balance sheet at September 30, 2021. (You will need to compute the missing figure for Notes P THE SODA SHOP Balance Sheet September 30, 2021 Liabilities & Owners' Equity Liabilities Assets $ Total liabilities Owners' equity $ Total Assets 0 Total Liabilities & Owners' Equity Reg A Req B1 > Req A Reg B1 Req B2 Req B3 Reg C Prepare a balance sheet at September 30, 2021. (You will need to compute the missing figure for Notes P THE SODA SHOP Balance Sheet Assets September 30, 2021 Liabilities & Owners' Equity Liabilities Total liabilities $ Owners' equity $ Total Assets 0 Total Liabilities & Owners' Equity ReqA Req B1 2 Required: a. Prepare a balance sheet at September 30, 2021 [You will need to compute the missing figure for Notes Payable) b-1. Prepare a balance sheet at October 6, 2021 b-2. Prepare an income statement for the period October 16, 2021. b-3. Prepare a statement of cash flows for the period October 1-6, 2021. 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? 30 points skod Complete this question by entering your answers in the tabs below. -000 Reg PO Re B1 Reg B2 Reg Reg meters Assume the notas payable do not come due for several years. Is The Soda Shop in a stronger financial position on September 30 or on October 67 The Son on batiborton September 30 De on October 6?
