Application Problem 2-15A a, 51-54 (PAR LOVE The Hughes Tools Company started business on October 1, 2019. Its fiscal year runs through to September 30 the following year. The following transactions occurred in the local that started on October 1, 2019, and ended on September 30, 2020. 1 On October 1, 2019, Jill Hughes invested $178,000 to start the business. Hughes is the only owner. She was issued 10,000 common share 2 On October 1, Hughes Tools borrowed $228,000 from a venture capitalist (a lender who specializes in start-up companies) and signed a note payable 3. On October 1, the company rented a building. The rental agreement was a two-year contract requiring quarterly rental payments (every three months of $15.000. Dayabile The first payment was made on October 1, 2019 (covering the period from October 1 to December 31). Thereafter, payments were due on December 31, March 31 med September 30 for each three-month period that followed. All the rental payments were made as spedfied in the agreement. On October 1, the company purchased equipment costing $262,900 for cash 5. Initial inventory was purchased for $86,000 cash. 6. Additional purchases of inventory during the year totalted $571,000, all on account. 7. Sales during the year totalled $947,500, of which $852,750 were on account. 8. Collections from customers on account totalled $658,500. 9. Payments to suppliers on account totalled $515,000. 10. The cost of the inventory that was sold during the year was $559,500. 11 Selling and administrative expenses totalled $85,000 for the year. Of this amount, $5,900 was unpaid at year end. 12 Interest on the note payable from the venture capitalist was paid at year end (September 30, 2020). The interest rate on the note is 10%. In addition, $29,500 of the note principal was repaid at that time. 13 The equipment was depreciated based on an estimated useful life of 10 years and a residual value of $23,000. 14. The company dedared and palda dividend of $5,400. (a) your answer is correct. 0430 28-05-2020 Show the effects of the transactions on the basic accounting equation (If an amount reduces the account balance then enter with negative sign. Indicate whether it is Revenue, 06 ENG a DI O cearch RCES 32 2- (63) Prepare a statement of financial position (unclassified) for 2020. (list assets in order of liquidity. Zist prop Hughes Tools Company Statement of Financial Position 2- 2- 12- Level tudy $ here to search 0 a JS Burnley, Understanding Financial Accounting, Second Canadian Edition ACCOUNTIN ES evel udy SWIMSHO NCCOUNTS LINKIND LINK ROTEX LINK YO TEXT LINK TO TEXT By accessing this question Assistance. You will learn while you earn points based on the Point Potential Policy set by your in here to search