Stan Raza asks your advice in setting up the accounting records for his new business, Stan's Bake
Question:
The business will need an office manager. This person will be paid a weekly salary of $1,800. Other expenses will include advertising and insurance. Since Stan's Bake Shop will want to know which aspects of the business generate the most and the least revenue, it will use separate service revenue accounts for cupcakes (his specialty!), office catering, and wedding cakes. Stan's Bake Shop's better customers will be allowed to open accounts with the business.
Required
List all the accounts Stan's Bake Shop will need, starting with the assets and ending with the expenses. Indicate which accounts will be reported on the balance sheet and which accounts will appear on the income statement.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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