Assume that on January 1, 2016, Shipley Sushi purchased a building, paying $56,000 cash and signing a $101,000 note payable. The restaurant paid another $63,000 to remodel the building. Furniture and fixtures cost $58,000, and dishes and supplies - a current asset - were obtained for $9,800. All expenditures were for cash. Assume that all of these expenditures occurred on January 1, 2016?
Shipley Sushi 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 $1,800?
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).