Question $1$

The following Statement of Financial Position accounts are reported for Bees Knees Ltd at December $31,20$X$1.$ This company's business model is to create novelty products from honey and resell them at a profit through small retailers and farm shops. All balances are in Canadian dollars $($$$)$

$\backslash$table$[[$Account$,$Balance $($DR$),$Balance $($CR$)],[$Petty cash,$400,],[$Cash in bank,$26,600,],[$A$/$R$,23,000,],[$Inventory $($products for sale$),60,000,],[$Honey and supplies inventory,$45,000,],[$Prepaid rent,$15,000,],[$Equipment$,55,000,],[$Accumulated depreciation $-$ Equip.,,$20,000],[$Debt$,,100,000],[$Common shares,,$50,000],[$Retained earnings,,$55,000]]$