Hello I need help with my accounting homework. Thanks!

QUESTION 4: Balance sheet Pure Water Ltd was formed on 1 April 2017. At 31 March 2018, Mr. Shimizu, the managing director and major shareholder, decided to prepare a balance sheet, which appears as follow: Pure Water Ltd Balance Sheet as at 31 March 2018 Assets (000) Liabilities and equity (000) Cash 213 420 Accounts payable 60 422 Accounts receivable 75 555 Bank loan 222 159 Inventory 32 458 Equity 214 662 Land (net) 175 810 Mr. Shimizu willingly admits that he is not an accountant by trade. He is concerned that his balance sheet might be incorrect. The following additional information is provided to you: (a) PureWater Ltd lent 10,000,000 to Mr. Shimizu for his personal use. Mr. Shimizu did not think it is necessary to record this transaction because of the separate legal entity concept, which states that the personal affair of owner personal must be kept separate from the affair of the company. Since Mr. Shimizu was going to use the 10,000,000 for his own personal affair, he thought that this transaction should not be reflected in the balance sheet of Pure Water Ltd. (b) The land was recorded on the balance sheet at the amount net of accumulated depreciation. The gross amount of the land (i.e., the original cost of the land) was 259,600,000. Ignore impairment of land. (C) The inventory was originally purchased for 32,458,000, but due to a downturn in the economy Mr. Shimizu sold the inventory for only 15,000,000. Mr. Shimizu thought it would still be best to record it at 32,458,000 because of the Historical Cost Principle. Required: Comment on the appropriateness of the accounting treatments for the three items above (Tip: Full marks will be given to well-structured and written answers. Use of the I.L.A.C. method may therefore be useful). You are not required to prepare the adjusted balance sheet. (20 marks) (Total for question 4: 20 marks)