Can someone help me with that? Please write every equation plz Harvey runs a sma
ID: 2548355 • Letter: C
Question
Can someone help me with that? Please write every equation plz
Harvey runs a small business selling e-bikes (which are imported from overseas). In February 2018 which was the first month of business Harvey had the following transactions 1. Obtained a bank loan for $55,000 repayable in two years time 2. Purchased inventory for $35,000 and paid $15,000 in cash and the balance to be paid in May 2018 3. Paid a bond (deposit) of $6,000 on the retail shop that he opened. Harvey managed to negotiate 3 months' rent free period. The bond is repayable when the lease expires at the end of one year 4. Purchased furniture and equipment for $5,000. 5. Harvey paid $15,000 from his personal bank account into the business bank account as capital. Required: a) Record the following transactions using the worksheet on page 4 of the answer booklet. (5 marks) b) Prepare the balance sheet as at 28 February 2018 using the worksheet on page 4 of the answer booklet. (4 marks)Explanation / Answer
Answer
Item
ASSETS =
LIABILITIES +
EQUITY
Cash
Inventory
Deposits
Furniture & Equipments
Bank Loan
Accounts Payable
Capital
1
55000
55000
2
-15000
35000
20000
3
-6000
6000
4
-5000
5000
5
15000
15000
Totals
$44000
$35000
$6000
$5000
$55000
$20000
$15000
ASSETS
Amount ($)
LIABILITIES & EQUITY
Amount ($)
Current Assets:
Liabilities:
Cash
44000
Accounts Payable
20000
Inventory
35000
Bank Loan
55000
Deposits
6000
Total Liabilities
75000
Total Current Assets
85000
Property, Plant & Equipment:
Equity:
Furniture & Equipments
5000
Owner's Capital
15000
TOTAL ASSETS
$90000
TOTAL LIABILITIES & OWNER'S EQUITY
$90000
Item
ASSETS =
LIABILITIES +
EQUITY
Cash
Inventory
Deposits
Furniture & Equipments
Bank Loan
Accounts Payable
Capital
1
55000
55000
2
-15000
35000
20000
3
-6000
6000
4
-5000
5000
5
15000
15000
Totals
$44000
$35000
$6000
$5000
$55000
$20000
$15000
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