Business Sim Corp. (BSC) issued 2,000 common shares to Kelly in exchange for $26,000. BSC borrowed $47,000 from the bank, promising to repay it in two years. BSC paid $52,000 for computer equipment with check number 101 and signed a note for $8,000 due in six months. BSC received $1,300 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 2.2.