USE THIS FOR ANSWERING A

USE THIS FOR ANSWERING B

3. Business transactions and the balance sheet: 9 marks Serge runs a small business selling kids-trikes (which are imported from overseas). In July 2018 which was the first month of business Serge had the following transactions 1. Obtained a bank loan for $50,000 repayable in three years time. 2. Purchased inventory for $25,000 and paid $5,000 in cash and the balance to be paid in August 2018. 3. Purchased office supplies for $1,250 but agreed with the supplier to delay payment until August. 4. Purchased furniture and equipment including a new computer for $6,000. 5. Serge paid $15,000 from his personal bank account into the business bank account as capital. Required: a) Record the following transactions using the worksheet on page 4 of the answer booklet (5 marks) b) Prepare the balance sheet as at 31 July 2018 using the worksheet on page 4 of the answer booklet. Identify each asset and liability as either current or non-current in the balance sheet. 4 marks)