1. Wise is planning to start up a new business in East York. Before he started trading, he bought a van for $4,550, a market stall for $3,000 and inventory for $1,570. He did not pay in full for his inventory and still owes $1,000 in respect of them. He borrowed $5,000 from D. Fox. After the events just described, and before trading starts, he still has $3,100 cash at Royal Bank of Canada. You are required to fill in the following blanks: (a) Assets ___________________ (b) Liabilities ___________________ (c) Capital ___________________

2.

Question 4 (10 marks)

Complete the columns to show the effects of the following transactions:

		Effect upon
		Assets	Liabilities	Capital
(a)	We settle account payable $70 in cash.
(b)	Bought fixtures $200 paying by cheque.
(c)	Our account receivables paid us by cash $100.
(d)	The owner introduces another $500 cash into the firm.
(e)	J Walker lends the firm $1,200 in cash.