Berkshire Hathaway Inc.
Initial Financial Position (30 November 2016):

• Creditors: $2,800,000
• Equipment: $15,000,000
• Motor vehicle: $8,500,000
• Stock of goods: $12,000,000
• Debtors: $7,000,000
• Cash at bank: $20,000,000
• Cash in hand: $80,000

The capital at that date is to be deduced by you.
During the first week of December 2016:
(a) Berkshire Hathaway bought extra equipment on credit for $2,800,000.
(b) Berkshire Hathaway bought extra stock by cheque $900,000.
(c) Berkshire Hathaway paid creditors by cheque $1,500,000.
(d) Debtors paid Berkshire Hathaway $1,300,000 by cheque and $90,000 by cash.
(e) Berkshire Hathaway put in an extra $500,000 cash as capital.
You are to draw up a balance sheet as on 7 December 2016 after the above transactions have been completed.