Exercise 3 Prepare a balance sheet from the following list of assets and liabilities, regarding the ownership interest as the missing item. $ Trade payables (creditors) 43,000 Cash at bank 9,000 Inventories (stock) of goods for resale 35,000 Land and Buildings 95,000 Wages due to employees but not paid 2,000 Vehicles 8,000 Five-year loan from a bank 20,000 Explain how the balance sheet will change for each of the following transactions: a) The wages due to the employees are paid at $2,000. b) One-quarter (1/4) of the inventory (stock) of goods held for resale is destroyed by fire and there is no insurance to cover the loss. c) Goods for resale are bought on credit at a cost of $5,000. Exercise 3 Prepare a balance sheet from the following list of assets and liabilities, regarding the ownership interest as the missing item. $ Trade payables (creditors) 43,000 Cash at bank 9,000 Inventories (stock) of goods for resale 35,000 Land and Buildings 95,000 Wages due to employees but not paid 2,000 Vehicles 8,000 Five-year loan from a bank 20,000 Explain how the balance sheet will change for each of the following transactions: a) The wages due to the employees are paid at $2,000. b) One-quarter (1/4) of the inventory (stock) of goods held for resale is destroyed by fire and there is no insurance to cover the loss. c) Goods for resale are bought on credit at a cost of $5,000