Please don't give image format On January 1, 2021, Little City Bar & Grill purchased a building, paying $58,000 cash and signing a $110,000 note payable. The company paid another $62,000 to remodel the building. Furniture and fixtures cost $55,000, and dishes and supplies-a current asset-wereobtained for $9,400. All expenditures were for cash. Assume that all of these expenditures occurred on January 1, 2021.i (Click the icon to view depreciation information.)Read the requirements.Requirement 1. Show what the company will report 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.Begin with the income statement.Income StatementExpenses:Depreciation expense - buildingDepreciation expense - furniture and fixturesSupplies expenseMore infoLittle City is depreciating the building over 25 years using the straight-line method,with an estimated residual value of $51,000. The furniture and fixtures will bereplaced at the end of five years and are being depreciated usingthe double-declining-balance method, with a residual value of zero. At the end ofthe first year, the company still had dishes and supplies worth $1,300.Print- XDoneRequirements1. Show what the company reported for supplies, plant assets, and cash flows atthe end of the first year on its• income statement,balance sheet, and• statement of cash flows (investing only).- XNote: The purchase of dishes and supplies is an operating cash flow becausesupplies are a current asset.PrintDone

Little City Bar & GrillCost of Building = Purchase price + Notes payable + Remodel price=…

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. Print Done X

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. Print Done X

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 55P

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