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Suppose you began a business as a wholesaler of auto parts in Libson. The following events have occured (the symbol represents the euro, the European

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Suppose you began a business as a wholesaler of auto parts in Libson. The following events have occured (the symbol represents the euro, the European currency): On March 1, 20X1, you invested 80,000 cash in you new sole proprietorship, which you call Autoparties Lisbon. You acquired 8,000 inventory on open account 4 You acquired equipement for 15,000 is exchange for a 5, 000 cash down payment and a 10, 000 promissory note A large retail store, which you had hoped would be a big customer, discontinued operations. You take tires home for your family car. Autopartes Lisbon's inventory carried the tires at 600. (Regard this as taking part of your capital out of Autopartes Lisbon.) Parts that cost 300 in transaction 2 were damaged in shipment. You returned them and obtained a full cash refund. Parts that cost 800 in transaction 3 were the wrong size. You returned them and obtained parts of the correct size in exchange. Parts that cost 500 in transaction 3 had an unacceptable quality. You returned them and obtained full credit on your account. You paid 2,000 on the promissory note. You use your personal cash savings of 5,000 to acquire some equipment for Autopartes Lisbon. You consider this to be an additional investment in your business. You paid 3,000 on open account. Two transmission manufacturers who are suppliers for Autopartes Lisbon announced a 7% rise in prices, effective in 60 days. You use your personal cash savings of 1,000 to acquire a new TV set for your family. You exchange equipment that cost 4,000 in transaction 4 with another wholesaler. However, the equipment received, which is almost new, is smaller and is worth only 1.500. Therefore, the other wholesaler also pays you 2,500 in cash. (You recognize no gain or loss on this transaction.) By using Exhibit 1-2 (p, 12) as a guide, prepare an analysis of Autopartes Lisbon's transactions for March. Confine your analysis to the effects on the financial position of Autopartes Lisbon. Prepare a balance sheet for Autopartes Lisbon as of March 31, 20X1. Suppose you began a business as a wholesaler of auto parts in Libson. The following events have occured (the symbol represents the euro, the European currency): On March 1, 20X1, you invested 80,000 cash in you new sole proprietorship, which you call Autoparties Lisbon. You acquired 8,000 inventory on open account 4 You acquired equipement for 15,000 is exchange for a 5, 000 cash down payment and a 10, 000 promissory note A large retail store, which you had hoped would be a big customer, discontinued operations. You take tires home for your family car. Autopartes Lisbon's inventory carried the tires at 600. (Regard this as taking part of your capital out of Autopartes Lisbon.) Parts that cost 300 in transaction 2 were damaged in shipment. You returned them and obtained a full cash refund. Parts that cost 800 in transaction 3 were the wrong size. You returned them and obtained parts of the correct size in exchange. Parts that cost 500 in transaction 3 had an unacceptable quality. You returned them and obtained full credit on your account. You paid 2,000 on the promissory note. You use your personal cash savings of 5,000 to acquire some equipment for Autopartes Lisbon. You consider this to be an additional investment in your business. You paid 3,000 on open account. Two transmission manufacturers who are suppliers for Autopartes Lisbon announced a 7% rise in prices, effective in 60 days. You use your personal cash savings of 1,000 to acquire a new TV set for your family. You exchange equipment that cost 4,000 in transaction 4 with another wholesaler. However, the equipment received, which is almost new, is smaller and is worth only 1.500. Therefore, the other wholesaler also pays you 2,500 in cash. (You recognize no gain or loss on this transaction.) By using Exhibit 1-2 (p, 12) as a guide, prepare an analysis of Autopartes Lisbon's transactions for March. Confine your analysis to the effects on the financial position of Autopartes Lisbon. Prepare a balance sheet for Autopartes Lisbon as of March 31, 20X1

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