At September 1, the Balance Sheet Accounts for Stanley's Restaurant

question 207

Essay

At September 1, the balance sheet accounts for Stanley's Restaurant were as follows:
The following transactions occurred during the next two days:
Stanley invested an additional $22,000 cash in the business. The accounts payable were paid in full. (No payment was made on the notes payable.)
Instructions
Prepare a balance sheet at September 3, 2009.

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Definitions:

Stock Securities

Financial instruments that represent ownership shares in a corporation, entitling the holder to a portion of its assets and earnings.

Available-For-Sale Securities

Financial assets that are neither held for trading purposes nor intended to be held to maturity, which can be sold in the short-term.

Trading Securities

Financial instruments bought and held primarily for selling them in the near term to profit from short-term price fluctuations.

Fair Value

An estimate of the market value of an asset or liability, based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.