Analysis of Transactions You began a business as a wholesaler of woolen goods. The following events have

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Analysis of Transactions You began a business as a wholesaler of woolen goods. The following events have occurred:

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1. On March 1, 20X1, you invested $60,000 cash in your new sole proprietorship, which you call BC Products. 2. You acquired $9,000 inventory for cash. 3. You acquired $8,000 inventory on open account. 4. You acquired equipment for $15,000 in exchange for a $5,000 cash down payment and a $10,000 promissory note. 5. A large retail store, which you had hoped would be a big customer, discontinued operations. 6. You take gloves home for your family. BC's inventory carried the gloves at $600. (Regard this as taking part of your capital out of BC Products.) 7. Gloves that cost $300 in transaction 2 were of the wrong style. You returned them and obtained a full cash refund. 8. Gloves that cost $800 in transaction 3 were of the wrong color. You returned them and obtained gloves of the correct color in exchange. 9. Caps that cost $500 in transaction 3 had an unacceptable quality. You returned them and obtained full credit on your account. 10. You paid $1,000 on the promissory note. 11. You use your personal cash savings of $5,000 to acquire some equipment for BC. You consider this to be an additional investment in your business. 12. You paid $3,000 on open account. 13. Two scarf manufacturers who are suppliers for BC announced a 7 percent rise in prices, effec- tive in 60 days. 14. You use your personal cash savings of $1,000 to acquire a new TV set for your family. 15. You exchange equipment that cost $4,000 in transaction 4 with another wholesaler. However, the equipment received, which is almost new, is smaller and is worth only $1,500. Therefore, the other wholesaler also pays you $2,500 in cash. (You recognize no gain or loss on this transaction.) Required 1. By using Exhibit 1-2 (p. 12) as a guide, prepare an analysis of BC's transactions for March. Confine your analysis to the effects on the financial position of BC Products. 2. Prepare a balance sheet for BC Products as of March 31, 20X1.

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