Assume J. Crew opened a store in St. Louis, starting with cash and common stock

Assume J. Crew opened a store in St. Louis, starting with cash and common stock of $100,000. Monique Farris, the store manager, then signed a note payable to purchase land for $90,000 and a building for $120,000. Farris also paid $60,000 for equipment and $10,000 for supplies to use in the business.

Suppose the home office of J. Crew requires a weekly report from store managers. Write Farris’s memo to the home office to report on her purchases. Include the store’s balance sheet as the final part of your memo. Prepare a T-account to compute the balance for Cash.