Greg Nelson is an 18 years old entrepreneur. After the completion of his high school, he took a course on general business from Conestoga School of Business. After the completion of his course, he started a business in Kitchener, ON, on January 1, 2016.The name given to the store was Sunshine Enterprise Ltd.

The transactions for the year were as follows:

1. Greg sold $ 50,000 of common stock for cash and borrowed $50,000 from bank at the very beginning of the business. He rented a house on Weber Street for his business at a monthly rent of $ 1000.
2. Greg purchased furniture and office equipment for his business on the date of commencement of his business. The cost price of furniture & equipment was $ 10,000 This transaction was on account.
3. Purchases of Inventory for resale were $ 55,000. All the purchases are on account.
4. Paid freight for the purchases of inventory $500.
5. He sold goods worth $32,500 for $60,000 on credit to the customers. There was a return of $ 2,000 worth of sales to Greg from a customer of which the cost was $1,000.
6. There was a return of $1,500 to suppliers for inferior quality of the supplies from transaction 3.
7. Salaries paid for the year was $5,500.
8. The amount of insurance premium paid for the year was $1,200.
9. Cash paid to suppliers was $24,000.
10. Cash collected from customers was $ 25,000.
11. Paid all rent expenses for the year.
12. The amount of advertisement cost paid for the year was $500.
13. Paid interest on the bank loan @ 5% per year.
14. Took a physical count indicating that $22,000 of inventory was on hand at the end of the year.
15. The outstanding amount of insurance premium at the yearend was $200.

Income Statement Balance Sheet Event No. Bal. 5a 5b 5c 8 10 12. 13 14. 15 Bal