Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Business Sim Corp. (BSC) issued 1,000 shares to Kelly in exchange for $12,000. BSC borrowed $30,000 from the bank, promising to repay it in

Business Sim Corp. (BSC) issued 1,000 shares to Kelly in exchange for $12,000. BSC borrowed $30,000 from the bank, promising to repay it in two years. BSC paid $35,000 for computer equipment with cheque number 101 and signed a note for $5,000 due in six months. BSC received $900 of supplies purchased on account. BSC's loan contains a clause (covenant) that requires BSC to maintain a ratio of current assets to current liabilities of at least 1.3. Requirement 1: 20mks Write the specific account, amount, and direction of effects for each transaction on BSC's accounting equation. (Enter any decreases to account balances with a minus sign.) Example: Assets = Liabilities 1 Cash+75,000 Shareholders' Equity Contributed Capital +75,000 Requirement 2: 25mks Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Requirement 3: 25mks- Summarize the journal entry effects from requirement 2 using T-accounts. Requirement 4: 30mks- Prepare a classified balance sheet at, July 31. Note

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Requirement 1 Transaction Analysis Transaction 1 Assets Cash 12000 Shareholders Equity Contributed C... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

5th edition

78025915, 978-1259115400, 1259115402, 978-0078025914

More Books

Students also viewed these Accounting questions

Question

Every real number is either a/an number or a/an_______ number.

Answered: 1 week ago

Question

3. What do you think is your most common unconscious bias?

Answered: 1 week ago

Question

3. Which of the listed virtues are part of who you are?

Answered: 1 week ago

Question

1. Can you describe your core beliefs?

Answered: 1 week ago