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

question 141

Essay

At September 1, the balance sheet accounts for Stanley's Restaurant were as follows: $$\begin{array} { l r l r } \text { Accounts Payable } & \$ 3,800 & \text { Land } & \$ 33,000 \\\text { Accounts Receivable } & 9,600 & \text { Common Stock } & ? \\\text { Buildings } & 68,000 & \text { Notes Payable } & 48,000 \\\text { Cash } & 10,000 & \text { Supplies } & 6,600 \\\text { Equipment } & 18,700 & &\end{array}$$
The following transactions occurred during the next two days:
The company issued additional shares of stock for $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 1, 2018.

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Definitions:

Common Stock

Stocks are financial instruments indicating partial ownership in a firm, granting the holder the right to vote on corporate matters and to earn from the company's earnings via dividends.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Purchased Goodwill

The premium paid over the fair value of identifiable net assets during the acquisition of a company, reflecting intangible assets like brand reputation or customer loyalty.

Net Income

The total profit of a company after all expenses, including taxes, interest, and operating costs, have been deducted from total revenue.