P10 Analysis of the effects of a few operations and drawing up a balance sheet

(8) Maxime Lamothe has been unemployed for several months. Following a suggestion from a

friend, he decides to found a dating agency. Here are the transactions that occurred during

of the first week of activity:

May 2 Committee Member Patricia Lacharit presents a $5,000 grant to Maxime

Lamothe to help him start his business. Maxime deposits this sum at the

Caisse Desjardins in an account opened in the name of the company, Rencontres

Sol Lithaire inc. The joint-stock company immediately issues shares of its

share capital for an amount equivalent to $5,000.

May 3 An old uncle of Maxime, Phil Lamothe, grants a loan to the young company to

encourage his nephew. Maxime deposits the sum of $2,000 in the account of

the company. Over the next 12 months, the company will have to repay $1,000

plus interest.

May 4 Maxime buys furniture for the business in cash, at a cost of $6,000.

May 4 Having taken advantage of a windfall when buying furniture, Maxime finds himself with a

excess furniture. Fortunately, the owner of a veterinary clinic, Rex

Johnson, agrees to buy him furniture that has cost $1,500. Mr. Johnson pays

immediately the sum of $500 and gives Maxime a promissory note maturing

in 90 days to cover the difference.

May 5 The dating agency buys office supplies for the company on credit from the

cost $250.

May 5 In order to help a friend, Pamela Sanderson, Maxime agrees to sell her some

office supplies that cost $50.

May 6 The company receives the sum of $300 for services that will only be rendered more

late. Maxime recognizes that this is a product received in advance.

May 6 Following her divorce, Maxime's sister finds herself destitute. He decides to sell her some of the company's furniture. The furniture in question had

cost $700. She undertakes to give him this sum within two months.

WORK TO DO

a) Analyze the preceding operations in a table comparable to that of problem P8.

Indicate transactions by their date and calculate the balance after each one.

b) Draw up, in due form, the company's balance sheet as of May 6, 20X1.

Total Assets: $7,550

i dont want a excel sheet please answer on paper what is this publicity?