Alice and Bob used $15,000 of their own money and borrowed $20,000 to open the Sample Cafe. They spent $12,000 on equipment and furniture and $3,000 on inventory. They also put down a $2,500 deposit on a location. Their total assets equal $28,500 as of December 31st before paying the first month's rent.
In early December, Alice and Bob decided to open the Sample Cafe with .pdf
1. In early December, Alice and Bob decided to open the Sample Cafe with $15,000 of their own
money and $20,000 borrowed from a friend. They have spent $12,000 on equipment and
furniture, and purchased $3,000 worth of inventory. Having put down a $2,500 deposit for a
location on Main St., they will pay the first month's rent when they open their doors on January
1st. HINT: Consider the change in each asset account, given the transactions above. Total Assets
has been included as a second hint. Create a balance sheet showing the financial position of the
Sample Cafe as of December 31st Use the data above. Remember, Assets must equal Total
Liabilities + Equity