Question
Required information E2-15 Analyzing and Recording Transactions, and Preparing and Evaluating a Balance Sheet [LO 2-2, LO 2-3, LO 2-4, LO 2-5] Business Sim Corp.
Required information
E2-15 Analyzing and Recording Transactions, and Preparing and Evaluating a Balance Sheet [LO 2-2, LO 2-3, LO 2-4, LO 2-5]
Business Sim Corp. (BSC) issued 1,000 common shares to Kelly in exchange for $15,000. BSC borrowed $36,000 from the bank, promising to repay it in two years. BSC purchased computer equipment for $47,000, signing a six-month note for $6,000, and paying the balance with check number 101. BSC received $750 of supplies purchased on account. BSCs loan contains a clause (covenant) that requires BSC to maintain a ratio of current assets to current liabilities of at least 1.5.
Cash Supplies Beg. Bal. 0 Beg. Bal. 0 750 End. Bal. End. Bal. 750 Equipment 0 Accounts Payable 0 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Notes Payable (long-term) Beg. Bal. Beg. Bal. Notes Payable (short-term) 0 6,000 47,000 X End. Bal. 47.000 End. Bal. 6,000 Common Stock Beg. Bal. 15,000 End. Bal. 15,000
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