The owner of the All American Hero Restaurant asked his Certified Personal Accountant $($CPA$)$ to

construct a balance sheet for the restaurant. The CPA requested all relevant financial records from the

restaurant owner. Here is a detailed record provided by the owner.

$1.$ Machine and Equipment $$25,000.$

$2.$ Food $[$meat$,$ vegetables, frozen food$]$ in the cooler $$14,062\mathrm{.}50.$

$3.$ Cash in the coffer $$3,000$ and cash in the bank $$4,000.$

$4.$ Customers who have purchased food and have not paid their balances $$15,000.$

$5.$ Employee's need to be paid next week $$3,000$ and outstanding food bill due next week as

well $$2,400.$

$6.$ Short$-$term borrowing $$3,350.$

$7.$ Due to the outstanding loan, accumulated interests are $$3,800.$

$8.$ Leftover from last year net income and will be re$-$invested in the company $$16,012\mathrm{.}50.[$This

is an accumulated leftover income as well.$]$

$9.$ Small business administration loan outstanding amount of $$7,500.$

$10.$ The company has shareholders with a capital amount of $25,000.$

The CPA believes that you can assist her in outlining the balance sheet items for the All American Hero

Restaurant and requested that you provide this information. Using the information provided in the

detailed financial record obtained from the owner above, construct the restaurant balance sheet.

Part B

The owner of the All American Hero Restaurant asked his CPA to construct an income statement for the

restaurant. The CPA requested all relevant financial records from the restaurant owner. Here is a

detailed record provided by the owner.

$1.$ Proceed from food sales and catering are $$107,000.$

$2.$ Cost of food sold is $$34,240.$

$3.$ Insurance, cable, advertising, rent, and others $ $35,000.$

$4.$ Depreciation expense of $$5,000.$

$5.$ Expenses that are already paid on the loans are $$800.$

$6.$ The tax bracket for the restaurant is $25\%.$

The CPA believes that you can assist her in outlining the income statement items for the All American

Hero Restaurant and requested that you provide this information. Using the information provided in the

detailed financial record obtained from the owner above, construct the restaurant income statement.