Hi please see attached
The Balance Sheet – Part 2Preparation
Review The Balance Sheet – Part 1.
Your Assignment
The Sample Cafe nearly broke even in the first month of business. Below is a summary of revenue and expenses for January:
| Sample Cafe | ||
| Item | Value | Note |
| Revenue | $30,000 | |
| Cost of Goods Sold | $3,500 | Includes $1,000 deducted from inventory |
| Total Expenses | $27,000 | Includes equipment depreciation of $200 |
| Net Income | ($500) | |
Starting with the balance sheet from December 31st (hint: click the link), use the income statement above to create an updated balance sheet for January 31st. Copy and paste the table below into your response and fill in the shaded cells.
| Sample Cafe | |||||
| Assets | Liabilities & Owner's Equity | ||||
| Asset Account | Value | Liability Account | Value | ||
| Total Liabilities | |||||
| Equity Account | Value | ||||
| Accumulated depreciation * | |||||
| Total Assets | $34,500 | Total Owner's Equity | |||
| Total Liabilities & Owner's Equity | $34,500 | ||||
* Hint: "Accumulated depreciation" is a negative number because it reduces the value of the "equipment/furniture" account.
The Sample Cafe suffered a small profit loss of $500 in January. Why did its cash balance increase by $700? Hint: Did all of the month's expenses involve an outlay of cash?
