QUESTION 2 (20 marks)

Fieldstone Consulting Limited had the following transactions during the month of March, the first month of operations for the business:

(i) The corporation issued 12,000 shares to Sandy Fieldstone in exchange for $120,000 cash.

(ii) Purchased $73,000 of equipment; made an $18,000 down payment and signed a note payable for the balance.

(iii) Made payment of $8,500 on the amount owed for equipment.

(iv) Borrowed $10,000 and signed a note payable.

(v) Performed consulting services for $1,500 cash. Required: (Show workings for items b to e)

(a) Prepare the journal entries to record the above transactions. (Explanation of Journal Entry is not required) (11 marks)

(b) Compute the balance in the Cash account at the end of March. (3 marks)

(c) What are the total assets of Fieldstone Consulting Limited at the end of March? (2 marks)

(d) Compute the balance in the Notes Payable account at the end of March. (2 marks)

(e) What is the total amount of equity at the end of March? (2 marks)