Melody Lane Music Company was started by John Ross eerty in 2018. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loa n. The company operates a retail store that sells records, tapes, and compact discs. Business wes so good during the first year of operations that John is considering opening a second store on the other side of The funds necessary for expansion will come from a new bank loan. In order to approve the loan, the bank requires financial statements. 4.16 points John asks for your help in preparing the balance sheet and presents you with the followin 31. 2018 g information for the year ending December a. Cash receipts consisted of the following From customers From iasue of common stock From bank loan 434,500 160,000 Print 124,000 b. Cash disbursements were as follows: Purchase of inventory Rent Salaries Utilities Insurance Purchase of equipment and furniture52,000 $312,000 30,000 42,000 17,000 15,000 c The bank loan was made on March 31, 2018. A note was signed requiring payment of interest and principal on March 31. 2019. The interest rate is 10% d. The equipment and furniture were purchased on January 3. 2018, and have an estimated useful life of 10 years with no anticipated salvage value. Depreciation per year is $5.200 e. Inventories on hand at the end of the year cost $112.000 f Amounts owed at December 31. 2018 were as follows: K Prev 8 of 24l N Next >