The Balance Sheet Shuffle Brandon Adams has recently opened a very successful dance club called "The Star- Lite" and has prepared the following balance sheet as at July 31, 20 Assets Cash $ 4 000 Accounts Receivable 3 000 THE STARLITE BALANCE SHEET JULY 31,20 Liabilities Accounts Payable Bank Loan Payable $12.000 30 000 Supplies 7 000 Total Liabilities $42 000 Truck 8 000 Dance Music CDs 10 000 Owner's Equity Stereo System 20 000 Brandon Adams, Capital 10 000 Total Assets $52 000 Total Liabilities and Equity $52 000 Brandon has recently applied for an additional bank loan, but has been turned down because his personal investment in the firm is too small. Brandon feels he can improve his capital balance by completing the three transactions below: 1. He will sell his truck to a friend for $8 000 because almost all of the club's sup- plies are delivered free. 2. He will borrow $10 000 from his brother, who will insist on signing a formal loan agreement. 3. He will use the cash from the first two transactions to reduce the accounts payable balance to zero.