Music on Wheels You have started your second year of the BCom at York University and decided to start your own business with your passion: be a DJ in parties. A family friend that works as a lending officer in one of Canada's largest banks explained to you how the business plan has to be presented so you can get some financing. On January 1st you set up a company-Music on Wheels Ltd with a capital of 50,000 shares at $1 each. A lawyer produced all the needed paperwork. On the same day, you submitted the business plan to the bank and was successfully granted a start up loan of $38,750, you deposited $23,250 of your personal savings and start up loan of $38,750 in the newly opened chequing account of your company. On January 1st, you transfers ownership of your van to the company. The van has a fair market value of $7,750 and is estimated to last for 50 months and then discarded. On January 1st you purchase music equipment for $27,900 and $930 worth of music files from the same shop. Half was paid in cash, and the remaining half is paid on Feb 15th. The music equipment wil be used for 60 months with no resale value at the end, while the music files are expensed immediately. On January 1st you sign the insurance contract for the van and the music equipment. The insurance premium for the van is $3,720 per year and for the equipment is $1,860 per year with payment at a latter date. On January 1st you rented a warehouse to store musical equipment for one year, starting on that day and paid $9,300 in advance. Performed service as the DJ of a fundraing event of a large international charity on Jan 10th. Got a cheque of $3,100 for your service and $4,650 on account to be collected on Jan 31st On January 14th, paid a local radio 90 days (16 days in January, 28 days in February, 31 days in March and 15 days in April) of advertising for $1,395 starting on January 16th. And on the same day, paid $1,395 of insurance for the months from January to March (whole month coverage for January, February, and March).