Question

On January 1, 2018, Absolutely Bar& Grill purchased a building, paying $57,000 cash and signing a $109,000 note payable. The company paid another $61,000 to remodel the building Furniture and fixtures cost $53,000, and dishes and supplies-a current asset-were obtained for $8,600. All expenditures were for cash. Assume that all of these expenditures occurred on January 1, 2018 1 Requirements 1. Show what the company reported for supplies, plant assets, and cash flows at the end of the first year on its income statement, balance sheet, and statement of cash flows (investing only). Note: The purchase of dishes and supplies is an operating cash flow because supplies are a current asset

Answer 1

Under income statement Three expense recorded at end of year
First is Depreciation on Building and Fixture
Second is Supplies expense when Supplied used.
Third is Interest expense on note payable.
But here No information about all such
Balance sheet
Partial Assets		Remarks
Current assets
Supplies	8600
Non-current assets
Land	118000	57000+61000
Furniture and Fixture	53000
Statement of cash flow (Partial)
Purchase of Building	-57000
Dismissal of building	-61000
Purchase of Furniture and Fixture	-53000
Cash Flow From Investing activity		-171000
Minus sign indicate Cash outflow.