82) Review the following balance sheet and answer the following questions.
Barry Rich, CPA
Balance Sheet
April 30, 2012
AssetsLiabilities
Cash$2,430Note Payable$3,000
Supplies1,690 Shareholders' equity
Equipment7,500Contributed capital$5,000
Retained Earnings3,620
Total Sharheolders' equity8,620
Total assets$11,620 Total liabilities and shareholders' equity $11,620
1. Is this business a sole proprietorship, partnership, or corporation? How do you know?
2. Who has claims to the assets owned by the business and how much are they?
3. Assume that April is the first month of operations and no dividends were given to the owner. How much net income was earned during April?
4. Using this balance sheet, describe what Barry Rich did during the first month of running his business.
83) Below is a balance sheet for Daily Grind Coffee Shop. Fill in the missing amounts.
Daily Grind Coffee Shop
Balance Sheet
September 30, 2012
AssetsLiabilities and shareholders' equity
Cash$350,000Accounts payableb. ________
Inventory a. ________ Salaries payable$50,000
Supplies25,000Total liabilities$250,000
Equipment500,000Contributed capitalc. ________
Total shareholders' equityd. ________
Total assets$950,000Total liabilities and shareholders' equity e. ________
84) Mia Hero started her own catering business called Hero's Catering. Analyze each of the following transactions for the first month of business. Prepare an income statement for the month of March.
a.Mia contributed $10,000 of her own money to start Mia's catering.
b.The business borrowed another $5,000 from the local bank.
c.The business rented a kitchen for $1,500 for the month.
d.The business spent $1,200 on food, spices and other supplies used during the month.
e.The business hired Betty Foit as an assistant chef and paid her $500 for the month.
f.The business earned $7,000 in revenues during the month.