Problem 10 (Preparing a Balance Sheet and Cash Flow Statement Effects of Business Transactions) The Tasty Bakery Balance Sheet August 1, 2012 a Assets Liabilities and Owners' equity Cash P 6,940 Liabilities Accounts Notes payable P 74,900 receivable 11,260 Accounts Supplies 7,000 payable 16,200 Land 67,000 Salaries payable 8,900 Building 84,000 Total liabilities 100,000 Equipment Equity : and fixtures 44,500 Share capital 80,000 Retained earnings 40,700 Total liabilities Total assets P 220,700 and owners' equity P 220,700 The Tasty Bakery Balance Sheet August 3, 2012 b Assets Liabilities and Owners' equity Cash P14,490 Liabilities : Accounts Notes payable P 74,900 receivable 11,260 Accounts Supplies 8,250 payable 7,200 Land 67,000 Salaries payable 8,900 Building 84,000 Total liabilities 91,000 Equipment Equity : and fixtures 51,700 Share capital 105,000 Retained earnings 40,700 Total liabilities Total assets P 236,700 and owners equity P 236,700 11-13