To establish a noodle shop, Mark invested $500 (event 1) and borrowed $500 from his friend (event 2). Mark needed to pay an interest of $10 to his friend each week (event 3).

Mark spent $200 on the cookery equipment (event 4), which would be used for 20 weeks (event 5) - after that, the equipment would have no value.

In the first week, Mark's sale in cash was $200 (event 6). But one transaction was not recorded in the cash sale. A customer this week forgot to bring cash and would definitely pay $20 in cash next week (event 7). The expenses that occurred during this week included $50 spent on raw materials (event 8) and $50 for the shop rent (event 9).

Required

(1)Use the simplified T-accounts to present these business activities or events on Week 1.

(tips: accounts may include asset-cash, asset-equipment, asset-"account receivables" liability-borrowings, equity-"introduced capital", equity-profit)

(2)Prepare the balance sheet on this week.