Scribd Logo
Upload

Welcome to Scribd!

  • Smokey Valley Cafe

    Uploaded by

    Shivam Bose
    29 views4 pages
    The Smokey Valley Cafe opened in August 1946 with $6,000 in capital and a $11,500 mortgage loan. By December 1946, the cafe had paid back $700 of the loan but also took on $92.01 in bills payable. While fixed assets like equipment declined in value due to depreciation, the cafe had $65.35 in cash on hand. Overall, the business operated at a $988.02 net loss in its first few months.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The Smokey Valley Cafe opened in August 1946 with $6,000 in capital and a $11,500 mortgage loan. By December 1946, the cafe had paid back $700 of the loan but also took on $92.01 in bills payable. While fixed assets like equipment declined in value due to depreciation, the cafe had $65.35 in cash on hand. Overall, the business operated at a $988.02 net loss in its first few months.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    29 views4 pages

    Smokey Valley Cafe

    Uploaded by

    Shivam Bose
    The Smokey Valley Cafe opened in August 1946 with $6,000 in capital and a $11,500 mortgage loan. By December 1946, the cafe had paid back $700 of the loan but also took on $92.01 in bills payable. While fixed assets like equipment declined in value due to depreciation, the cafe had $65.35 in cash on hand. Overall, the business operated at a $988.02 net loss in its first few months.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 4

    Smokey Valley Cafe

    Solution
    B/S on 12th August, 1946
    Liabilities ($) Assets ($)

    Capital 6000 Fixed Assets:


    Land 2500
    Improvement 2000 4500

    Mortgage Loan 11500 Buildings 10500

    Café Equipment 1000

    Current Asset:
    Cash in hand 1500

    17500 17500
    B/S on 16th December, 1946
    Liabilities Assets
    Capital 6400 Fixed Asset
    Loan 11500 Land 4500.00
    - Repayment 700 10800 Depreciation - 44.45 4455.55
    Current Liability Buildings 10500.00
    Bills Payable 92.01 Depreciation - 233.45 10266.55
    Café Equipment 1415.95
    Depreciation - 44.19 1371.76
    Current Asset
    Beer Deposit 35
    Food on Hand 100
    Cash on hand 65.35
    Bank Balance 9.78
    Net Loss 988.02
    17292.01 17292.01
    Cash Book
    ($) ($)

    12.8.46 To Capital A/c. 1500 15.8.46 By Beer Deposit 35.00

    November To Capital A/c. 400 October, By Equipment 415.95


    ‘46 ’46

    By Mortgage Repayment 700.00

    By Bank A/c. 9.78

    By Drawings 673.92

    By Balance c/d 65.35

    1900.00 1900.00

    You might also like