Foundations of Management Specialization Accounting: Making Sound Decisions Prof. Marc Badia Week 1: "Introduction to Accounting: The Balance sheet" Transactions for the preoperational period x0: On December 1^st, Cristina incorporates the Campus Bookstore and together with her uncle, they contribute euro 50,000 of capital to the business. Cristina negotiates a loan with the bank. On December 31^st, the Campus the Bookstore receives a three-year bank loan of euro 20,000. The full amount of principal has to be repaid at the end of the third year. On December 31st, the Campus Bookstore purchases furniture and equipment for euro 25,000 (euro 15,000 paid in cash and the rest to be paid in the coming year). On December 31^st, the Campus Bookstore acquires a bookstore management software for euro 3,000 paid in cash. On December 15^th, the campus Bookstore purchases books on credit for a total amount of euro 40,000. On December 31^st, Cristina signs a one-year lease for the premises of the Campus Bookstore. The lease will start on January 1^st and will end on December 31st of year x1. The Campus Bookstore prepays euro 6,000 for the full year rent