Business Sim Corp. (BSC) issued 1,000 common shares to Kelly in exchange for $10,000. BSC borrowed $31,000 from the bank, promising to repay it in two years. BSC paid $36,000 for computer equipment with check number 101 and signed a note for $3,000 due in six months. BSC received $500 of supplies purchased on account. BSCs loan contains a clause (covenant) that requires BSC to maintain a ratio of current assets to current liabilities of at least 1.4.

Required information Business Sim Corp. (BSC) issued 1,000 common shares to Kelly in exchange for $10,000. BSC borrowed $31,000 from the bank, promising to repay it in two years. BSC paid $36,000 for computer equipment with check number 101 and signed a note for $3,000 due in six months. BSC received $500 of supplies purchased on account. BSC's loan contains a clause (covenant") that requires BSC to malntaln a ratlo of current assets to current llabillties of at least 1.4 Required: 1. Identify the transactions and analyze their accounting equation effects. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity Totals