financeThe balance sheet items of The Sweet Soda Shop (arranged in alphabetic al order) were as follows at the close of business on September 30, 2011:
$$
\begin{array}{|cc}
\text {Accounts Payable } & \$ 8,500 & \text{Furniture and Fixtures} & 20,000 \\
\text { Accounts Receivable } & 1,250 & \text{Land} & \$55,000 \\
\text { Building } & 45,500 & \text{ Notes Payable} & ?\\
\text {Capital Stock } & 50,000 & \text {Retained Earnings} & 4,090\\
\text { Cash } & 7,400 & \text{Supplies} & 3,440 \\
\end{array}
$$
The transactions occurring during the first week of October were:\
Oct. 3 Additional capital stock was sold for $\$ 30,000$. The accounts payable were paid in full. (No payment was made on the notes payable.)\
Oct. 6 More furniture was purchased on account at a cost of $\$ 18,000$, to be paid within 30 days. Supplies were purchased for $\$ 1,000$ cash from a restaurant supply center that was going out of business. These supplies would have cost $\$ 1,875$ if purchased under normal circumstances.\
Oct. 1-6 Revenues of $\$ 5,500$ were earned and paid in cash. Expenses required to earn the revenues of $\$ 4,000$ were incurred and paid in cash.\
Instructions\
c. Assume the notes payable do not come due for several years. Is The Sweet Soda Shop in a stronger financial position on September 30 or on October 6 ? Explain briefly. politics of the united states 2nd Edition•ISBN: 9781464113079David G Myers901 solutions
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