(Learning Objectives 1, 2: Analyzing transactions) Assume M. Crew opened a store in Hong Kong, starting with cash and ordinary shares 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 offi ce of M. Crew requires a weekly report from store managers.

Write Farino’s memo to the home offi ce to report on her purchases. Include the store’s balance sheet as the fi nal part of your memo. Prepare a T-account to compute the balance for Cash.