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QUESTION 2 In early December Alice and Bob decided to open Sample Cafe with $14,000 of their own money and $21,000 borrowed from a
QUESTION 2 In early December Alice and Bob decided to open Sample Cafe with $14,000 of their own money and $21,000 borrowed from a friend. They have spent $13,000 on equipment and furniture, and they have purchased $2,700 worth of cups for cash which they expect will be used over the next three months. Having put down a $2,300 deposit for a location on Main St., they will pay the first month's rent when they open their doors on January 1. In the balance sheet template below, fill in the appropriate values as of December 31. Cash Asset Account $ 18000 Accounts Receivable $ 0 Inventory Value Liability/Equity Account Accounts Payable $ 0 Long-Term Liabilities 21000 $ 3300 Total Liabilities Furniture & Equipment $ 11000 n/a Accumulated Depreciation* $ 0 Deposit Total Assets n/a 21000 Paid-in Capital 14000 $ 2700 n/a 35000 * Input Accumulated Depreciation as a negative value. n/a Total Liabilities & Equity 35000 Value
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