Question no: Axa

On January 1, 2018, Absolutely Bar & Grill purchased a building, paying $57,000 cash and signing a $109,000 note payable. The company paid another $65,000 to remodel the building. Furniture and fixtures cost $54,000, and dishes and suppliesa current asset-were obtained for $8,600. All expenditures were for cash. Assume that all of these expenditures occurred on January 1, 2018. (Click the icon to view depreciation information.) Read the requirements Requirement 1. Show what the company will report for supplies, plant assets, and cash flows at the end of the first year on its income statement, balance sheet, and statement of cash flows. Begin with the income statement. Requirements More Info 1. Show what the company reported for supplies, plant assets, and cash flows at the end of the first year on its income statement, balance sheet, and statement of cash flows (investing only) Note: The purchase of dishes and supplies is an operating cash flow because supplies are a current asset. Absolutely is depreciating the building over 25 years using the straight-line method, with estimated residual value of $52,000. The furniture and fixtures will be replaced at the end of five years and are being depreciated using the double-declining-balance method, with a residual value of zero. At the end of the first year, the company still had dishes and supplies worth $1,800 Print Done Print Done