Verizon Communications
Initial Financial Position (30 November 2014):

• Creditors: $3,000,000
• Equipment: $13,500,000
• Motor vehicle: $7,500,000
• Stock of goods: $9,500,000
• Debtors: $6,500,000
• Cash at bank: $18,500,000
• Cash in hand: $70,000

The capital at that date is to be deduced by you.
During the first week of December 2014:
(a) Verizon bought extra equipment on credit for $2,400,000.
(b) Verizon bought extra stock by cheque $750,000.
(c) Verizon paid creditors by cheque $1,300,000.
(d) Debtors paid Verizon $1,000,000 by cheque and $80,000 by cash.
(e) Verizon put in an extra $350,000 cash as capital.
You are to draw up a balance sheet as on 7 December 2014 after the above transactions have been completed.