QUESTION $1(24$ marks$)$

Part A $(18$ marks$)$

Sweeny Limited began operations in May and had the following transactions during the first month of operation:

$($i$)$ Mr$.$ Sweeny invested $$135,000$ cash in the business in exchange for $15,000$ shares of share capital.

$($ii$)$ Purchased $$7,500$ of office equipment; with a $$2,250$ cash payment and the balance would be paid in $30$ days.

$($iii$)$ Made payment to settle the amount owed for the office equipment in $($ii$).$

$($iv$)$ Borrowed $$45,000$ from Hong Kong Bank by issuing a note payable.

Required:

$($Explanations for the journal entry are NOT required.$)$

a$)$ Prepare the journal entries to record the above transactions.

$(9$ marks$)$

b$)$ Compute the balance in the Cash account at the end of May.

$(3$ marks$)$

c$)$ What is the total amount of the assets of Sweeny Limited at the end of May?

$(2$ marks$)$

d$)$ What is the total amount of equity at the end of May?

$(2$ marks$)$

e$)$ Compute the balance in the Notes Payable account at the end of May.

$(2$ marks$)$