E2-15 (Static) Analyzing and Recording Transactions, and Preparing and Evaluating a Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5]

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[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 $30,000 from the bank, promising to repay it in two years. (c) Bought computer equipment by signing check number 101 in the amount of $35,000 and signing a promissory note for $5,000 due in six months. This loan contains a clause (covenant) that requires Business Sim Corporation (BSC) to maintain a ratio of current assets to current liabilities of at least 1.3. (d) Received $900 of supplies and promised to pay for them in 30 days.

Assuming Business Sim Corporation (BSC) entered into no other activities during its first year ended September 30, prepare the companys classified balance sheet. Include a balance of zero in Retained Earnings.