Job to do. a) Present the table of the effect of transactions on the accounting equation using the following accounts: Cash, Equipment, Office furniture, Bank loan (line of credit), Suppliers and Jack Allen — capital. b) Prepare the balance sheet for Little Wolves as of September 30, 20X8, assuming that there were no other transactions during the month of September.
Jack Allen, a graduate in childcare services, wants to open a daycare under the name Little Wolves.
Here are the transactions relating to his company until September 18, 2018:
Sept 01: Jack personally borrows $15,000 from his mother and deposits this sum at Banque Boréale in an account established in the name of Little Wolves.
Sept 01: Purchase on credit of a set of children's toys from Toys Games Inc. for the sum of $3,000 (invoice no. 2715).
Sept 06: Bank loan of $9,000 from Banque Boréale on behalf of Little Wolves.
Sept 08: Issuance of check no. 1 for $1,000 & Toys games Inc., in partial payment of invoice no. 2715 of September 1, 2018.
Sept 10: Cash purchase (check No. 2) of desks and chairs for a total of $4,500. The actual value of the furnishings is $7,500.
Sept 12: Purchase of swings on credit: $1,000.
Sept 14: Purchase by check (No. 3) of educational games: $2,000.
Sept 16: Electronic transfer of $300 made to repay part of the bank loan (line of credit).
Sept 18: Payment (cheque No. 5) of the amount due to Toys games Inc. Regarding invoice No. 2715.
Job to do.
- a) Present the table of the effect of transactions on the
accounting equation using the following accounts: Cash, Equipment, Office furniture, Bank loan (line of credit), Suppliers and Jack Allen — capital. - b) Prepare the balance sheet for Little Wolves as of September 30, 20X8, assuming that there were no other transactions during the month of September.
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