Check my work Required information E2-15 (Static) Analyzing and Recording Transactions, and Preparing and Evaluating a Balance Sheet (LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2.5) [The following information applies to the questions displayed below) Business Sim Corporation (BSC) entered into the following four transactions: (a) Issued 1,000 common shares to Kelly in exchange for $12,000. () Borrowed $30,000 from the bank, promising to repay it in two years. (c) Bought computer equipment by signing check number 101 in the amount of $35,000 and signing a promissory note for $5,000 due in six months. This loan contains a clause ("covenant) that requires Business Sim Corporation (BSC) to maintain a ratio of current ossets to current Mobilities of at least 13. (d) Received $900 of supplies and promised to pay for them in 30 days E2-45 (Static) Part 1 Required: 1. Analyze the accounting equation effects of each of these four transactions (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity . 0+ Totals Required information E2-15 (Static) Analyzing and Recording Transactions, and Preparing and Evaluating a Balance Sheet (L 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5) (The following information applies to the questions displayed below.) Business Sim Corporation (BSC) entered into the following four transactions: (a) issued 1,000 common shares to Kelly in exchange for $12,000. (b) Borrowed $30,000 from the bank, promising to repay it in two years. (c) Bought computer equipment by signing check number 101 in the amount of $35,000 and signing a promissory note for $5,000 due in six months. This loan contains a clause ("covenant") that requires Business Sim Corporation (BSC) to maintain a ratio of current assets to current liabilities of at least 1.3. (d) Received $900 of supplies and promised to pay for them in 30 days. E2-15 (Static) Part 2 2-a. Prepare journal entries for the transactions described 2.b. Prepare T-accounts. Assume all beginning balances are zero. Complete this question by entering your answers in the tabs below. Reg 2A Req 28 Prepare journal entries for the transactions described. (If no entry is required for a transaction/event, select "No Journal Entry Required In the first account field.) View transaction list Journal entry worksheet 1 2 3 4 Cepare journal entries for the transactions describe. the first account field.) View transaction list Journal entry worksheet Reg 2A Req 2B Prepare T-accounts. Assume all beginning balances are zero. Cash Supplies Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Equipment Accounts Payable Credit Credit es Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Notes Payable (long-term) Debit Beginning Balance Credit Notes Payable (short-term) Debit Beginning Balance Credit Ending Balance Ending Balance E2-15 (Static) Part 3 3. Assuming Business Sim Corporation (BSC) entered into no other activities during its first year ended September 30, prepare the company's classified balance sheet. Include a balance of zero in Retained Earnings. BUSINESS SIM CORPORATION Balance Sheet current assets to current liabilities of at least 1.3. (d) Received $900 of supplies and promised to pay for them in 30 day E2-15 (Static) Part 4 4-a. Calculate the current ratio of Business Sim Corporation (BSC). 4-6. Is Business Sim Corporation (BSC) complying with or violating its loan covenant? Complete this question by entering your answers in the tabs below. Req 4A Reg 4B Calculate the current ratio of BSC. Current Ratio Numerator Denominator Reg 40 >
