iGamez is a start-up video game development company. It currently owns computer equipment worth RM60,000 and has cash on hand RM40,000 contributed by iGamezs owners.

(a) For each of the following transactions, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction?

(i) iGamez takes out a bank loan. It receives RM100,000 in cash and signs a note promising to pay back the loan over 5 years. (2 marks)

(ii) iGamez uses the cash from the bank plus RM40,000 of its own funds to finance the development of a new game. (2 marks)

(iii) iGamez sells the video game product to Google Play Store, which will market it to the public under Google name. iGamez accepts payment in the form of 4,000 shares of Google stock. (2 marks)

(iv) iGamez sells the shares of stock for RM140 per share and uses part of the proceeds to pay off the bank loan. (2 marks)

(b) Prepare iGamezs balance sheet just after it gets the bank loan. What is the ratio of real assets to total assets? (6 marks)

(C) Prepare the balance sheet after iGamez accepts the payment of shares from Google. What is the ratio of real assets to total assets?