Assume that on January 1, 2014, an Early Risers Caf purchased a building, paying $54,000 cash and
Question:
Early Risers Café is depreciating the building over 25 years by the straight-line method, with estimated residual value of $50,000. 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 $1,600. 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, and
Statement of cash flows (investing only).
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Related Book For
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
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