Assume that in January 2010, an Oatmeal House restaurant purchased a building, paying $56,000 cash and signing
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Oatmeal House is depreciating the building over 20 years by the straight-line method, with estimated residual value of $55,000. The furniture and fixtures will be replaced at the end of five years and are being depreciated by the double-declining-balance method, with zero residual value. At the end of the first year, the restaurant still has dishes and supplies worth $1,700.
Show what the restaurant will report for supplies, plant assets, and cash flows at the end of the first year on its
* Income statement
* Balance sheet
* Statement of cash flows (investing only)
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Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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