Any action will generate two or more entries in a balance sheet; otherwise it would fall out of balance. For example: If a company were to increase its cash reserves by $100,000 from funds generated in its operations, the following may be a likely outcome to the balance sheet:

For each scenario below, show the balance sheet effects for each action:

• Treat each scenario as separate transactions (i.e. do not carry #1 onto #2, etc., just recreate the table template above showing the impacts upon the balance sheet that starts with all $0s):

1. The owners invest $150,000 and buys a new piece of equipment of same value
2. Purchase $115,000 of inventory on account (to be repaid this year)
3. Borrowed $85,000 in cash from the bank that it will pay back in 3 years
4. Buys a new truck for $42,000 for which it borrows the entire amount (to be paid back in 6 months)
5. Sold $120,000 in services; 25% of the sale is paid immediately in cash, with the remainder on account (to be paid within the year)

2017 2017 $0.00 $0.00 $0.00 $0.00 $0.00 $100,000.00 $0.00 $0.00 $0.00 $100,000.00 HW1 - Q6 Starting point Balance Sheet (BS) ASSETS Current Assets Cash Marketable Securities Accounts Receivable Inventories Total Current Assets Gross Fixed Assets (at Cost) Land and Buildings Machinery and Equipment Fumiture and Fixtures Vehicles Other (includes Financial Leases) Total Gross Fixed Assets Less: Accumulated Depreciation Net Fixed Assets Total Assets HWI - Q6 Example Balance Sheet (BS) ASSETS Current Assets Cash Marketable Securities Accounts Receivable Inventories Total Current Assets Gross Fixed Assets (at Cost) Land and Buildings Machinery and Equipment Furniture and Fixtures Vehicles Other (indudes Financial Le ases) Total Gross Fixed Assets Less: Accumulated Depreciation Net Fixed Assets Total Assets $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $100,000.00 LIABILITIES & STOCKHOLDERS EQUITY Current Liabilities Accounts Payable Notes Payable Accruals Total Current Liabilities Long-Term Debt (incl. financial leases) Total Liabilities Stockholder Equity Preferred Stock Common Stock Paid-in capital in excess of par on common stock Retained Eamings Total stockholders' equity Total Liabilities and Stockholders Equity $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 LIABILITIES & STOCKHOLDERS EQUITY Current Liabilities Accounts Payable $0.00 Notes Payable $0.00 Accruals $0.00 Total Current Liabilities $0.00 Long-Term Debt (ind, financial leases) $0.00 Total Liabilities $0.00 Stockholder Equity Preferred Stock $0.00 Common Stock $0.00 Paid-in capital in excess of par on common stock $0.00 Retained Earnings $100,000.00 Total stockholders' equity $100,000.00 Total Liabilities and Stockholders Equity $100,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00