Assume M. Crew opened a store in Dallas, starting with cash and common stock of $94,000. Melissa Farino, the store manager, then signed a note payable to purchase land for $88,000 and a building for $123,000. Farino also paid $60,000 for equipment and $8,000 for supplies to use in the business.
Suppose the home office of M. Crew requires a weekly report from store managers. Write Farino’s memo to the home office to report on her purchases. Include the store’s balance sheet as the final part of your memo. Prepare a T-account to compute the balance for Cash.