90.2K

Verified Solution

Link Copied!

You will need to create financial statements for both companies including the Income Statement (Multi Step format) and Balance Sheet.

\begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{ Cozy Cafe } & \multicolumn{2}{|c|}{ Literati Lattes } \\ \hline Account & Debit & Credit & Debit & Credit \\ \hline Cash & 500,000 & & 250,000 & \\ \hline Accounts Receivable & 100,000 & & 80,000 & \\ \hline Inventory & 246,700 & & 100,000 & \\ \hline Supplies & 3,000 & & 800 & \\ \hline Prepaid Insurance & 2,400 & & 24,000 & \\ \hline Land & 800,000 & & 500,000 & \\ \hline Building & 300,000 & & 180,000 & \\ \hline A/D Building & & 100,000 & & 40,000 \\ \hline Equipment & 50,000 & & 120,000 & \\ \hline A/D Equipment & & 30,000 & & 30,000 \\ \hline Accounts Payable & & 40,000 & & 10,000 \\ \hline Uneamed Revenue & & 12,000 & & 4,000 \\ \hline Long Term Note Payable & & 75,000 & & 26,000 \\ \hline Common Stock & & 860,000 & & 380,000 \\ \hline Retained Earnings & & 780,000 & & 475,000 \\ \hline Dividends & 2,000 & & 4,500 & \\ \hline Sales & & 420,000 & & 680,000 \\ \hline Cost of Goods Sold & 140,000 & & 200,000 & \\ \hline Interest Expense & 7,000 & & 4,800 & \\ \hline Insurance Expense & 3,500 & & 3,000 & \\ \hline Sales Salaries & 60,000 & & 75,000 & \\ \hline Office Rent Expense & 3,600 & & 5,600 & \\ \hline Office Supplies Expense & 400 & & 900 & \\ \hline Advertising & 8,400 & & 13,000 & \\ \hline Sales Commission & 15,000 & & 30,000 & \\ \hline Administrative Salaries & 75,000 & & 53,400 & \\ \hline & 2,317,000 & 2,317,000 & 1,645,000 & 1,645,000 \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer