Assume T. Crew opened a store in San Diego, starting with cash and common stock of $90,000. Barbara Breen, the store manager, then signed a note payable to purchase land for $91,000 and a building for $120,000. Breen also paid $62,000 for equipment and $13,000 for supplies to use in the business.
Suppose the home office of T. Crew requires a weekly report from store managers. Write Breens memo to the head office to report on her purchases. Include the stores balance sheet as the final part of your memo. Prepare a T-account to compute the balance for Cash.