Problem $5$

Natalie Ray's lodging business $($she is a sole proprietor$)$ had the following activity:

She invested $$50,000$ in the business.

The lodging business purchased a van, paying $$5,000$ down and borrowing $$20,00$

$0$ from the bank.

The business purchased operating supplies for $$1,000.$

The business prepaid $$2,000$ for rent for the first month.

The business prepaid $$2,000$ for insurance for the year.

The business purchased additional operating supplies on account from RM Wholesa le$,$ for $$5,000.$

The business purchased several pieces of equipment for $$30,000$ cash.

Required:

Prepare a table similar to Table I and show the impact of these activities on the followin $g$ accounts:

Cash

Operating supplies

Prepaid insurance

Prepaid rent

Equipment

Van

Accounts payable

Bank load

Natalie Ray, Capital