a-d = questions 1-4

Required information E2-15 (Algo) Analyzing and Recording Transactions, and Preparing and Evaluating a Balance Sheet [LO 21, LO 2-2, LO 2-3, LO 2-4, LO 2-5] (The following information applies to the questions displayed below] Business Sim Corporation (BSC) entered into the following four transactions: (a) issued 1,000 common shares to Kelly in exchange for $12,000. (b) Borrowed $33,000 from the bank, promising to repay it in two years. (c) Bought computer equipment by signing check number 101 in the amount of $38,000 and signing a promissory note for $5,000 due in six months. This Ioan contains a ciause ("covenant') that requires Business Sim Corporation (BSC) to maintain a ratio of current assets to current liablities of at least 1.3. (d) Received $600 of supplies and promised to pay for them in 30 days. E2-15 (Algo) Part 1 Required: 1. Analyze the accounting equation effects of each of these four transactions. (Enter any decreases to account balances with a minus sign.) Journal entry worksheet Business Sim Corp. (BSC) issued 1,000 common shares to Kelly in exchange for $12,000. Record the transaction. Note: Enter debits before credits. 1 Business Sim Corp. (BSC) issued 1,000 common shares to Kelly in exchange for $12,000. Record the transaction. 2 BSC borrowed $33,000 from the bank, promising to repay it in two years. Record the transaction. 3 BSC bought computer equipment by signing check number 101 in the amount of $38,000 and signing a promissory note for $5,000 due in six months. Record the transaction. 4 BSC received $600 of supplies and promised to pay for them in 30 days. Record the transaction. 3. Assuming BSC entered into no other activities during its first year ended September 30, prepare the company's classified balance sheet. Include a balance of zero in Retained Earnings. 4-a. Calculate the current ratio of Business Sim Corporation (BSC). 4.b. Is Business Sim Corporation (BSC) complying with or violating its loan covenant? Complete this question by entering your answers in the tabs below. Calculate the current ratio of BSC. 4-a. Calculate the current ratio of Business Sim Corporation (BSC). 4-b. Is Business Sim Corporation (BSC) complying with or violating its loan covenant? Complete this question by entering your answers in the tabs below. Is BSC complying with or violating its loan covenant