Englee Ltd.

(Englee) is a retail clothing store owned by Ned Englee. Set up an accounting equation spreadsheet and enter each of the following independent economic events into it.

a. Englee purchases new furniture and fixtures for the store for $100,000 cash.

b. Englee purchases new carpeting for $18,000. It pays $10,000 in cash and the remainder is payable in 90 days.

c. Englee purchases supplies for $900 cash.

d. Englee repays $5,000 on its bank loan.

e. Ned Englee pays $55,000 to purchase Englee common shares.

f. Englee receives an invoice from a local newspaper for advertising run the previous week. Englee pays the $500 owing immediately.

g. Englee sells merchandise to customers during the month worth $32,000 cash. The goods cost $15,000. (Hint: The company records the reduction in inventory and cost of sales at the time the sales are recorded.)

h. Englee sells merchandise worth $8,000 to a corporate executive. The merchandise cost $5,200. The customer promises to pay in 30 days. (Hint: The company records the reduction in inventory and cost of sales at the time the sale is recorded.)

i. Englee collects $5,000 that is due from a customer.

j. Englee pays a law firm a $4,500 deposit for legal service that will be provided next year.