You and a friend each put in $20,000 to capitalize the corporation (and you each get 10,000 shares). That's $40,000 total. o You buy a truck for $20,000. o You take out a loan for $5,000 in cash. 

What does the balance sheet look like? 

Explain each transaction as a separate event. 

At the end, what are your total assets? 

What are your total liabilities? 

What is your shareholder equity?