Background

John started a bicycle repair shop called "John's Bike Fix" on January $1,2024,$ with $$75,000$ in cash. Over the first quarter $($January $1,2024-$ March $31,2024),$ he made the following transactions:

January $5,2024$: Purchased bicycle parts worth $$15,000$ and repair tools $($fixed assets$)$ worth $$10,000.$ Half of this amount $($$$12,500)$ was paid in cash, and the rest is due on February $5,2024.$ The tools have an expected useful life of $5$ years, with no residual value.

January $10,2024$: Paid $$5,000$ in cash for renting a small workshop space for the entire quarter.

January $31-$ March $31,2024$: Repaired bicycles for customers, earning $$30,000$ in total. To perform the repairs, John used $$10,000$ worth of the purchased parts. Half of the customers $($$$15,000)$ paid in cash, and the remaining customers promised to pay in April $2024.$

February $15,2024$: Paid $$3,000$ in cash for utilities and other operating expenses.

March $10,2024$: Purchased an additional $$10,000$ worth of bicycle parts on credit, with payment due in May $2024.$