his accou
Richard operates a small automobile parts store that specializes in providing parts for older vehicles. His company is called “Re-Store Auto Parts” and he is the sole operator. When he started the company, he put $30,000 of his own money into the company. Richard also purchased 5 vehicles for $3,000 each that were not running, so he could take parts out of them to sell. The rest of the money went into renting space to keep the parts and all other business operations. Richard needs to ensure that these financial transactions are recorded properly, therefore he provides this information to his accountant.
a) Based on Richard’s situation, state and define the term we would use to describe his investment into his company
b) Define each and explain the difference between a
c) Analyze three parts of the balance sheet and apply it to Richard’s company
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