Constructing a balance sheet.

You have just been hired to manage a new store that has not yet started business, but has had some financial transactions. You know it is vitally important to keep accurate financial records. Create a balance sheet for the first day of business based on the following information:

April 1, year 1 (business start date):

The owner puts $100,000 of his own money into the business.

The owner also took out a bank loan of $100,000. No principal payment until Jan, year 2, then repay principal at $1000 per month. Interest payable monthly starting May 1 at 8% annually (.66666% monthly) on the outstanding balance.

Purchases a building for $150,000. Puts $50,000 down and a 30 year mortgage on the remainder at 10% interest rate. This is separate from the bank loan above. Payments start May 1. Payments are principal of $500 per month.

Purchases $50,000 worth of inventory

Purchases software for $3500 that will be expensed as an operating cost, not carried as an asset.

Purchases manufacturing equipment for $50,000, but will not pay for it until May 30, year 1. No interest.

Thankk You for the help!