Required information

E$2-15($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 $2-5]$

$[$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 equi, tisent 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 $1\mathrm{.}3.$

d$.$ Received $$900$ of supplies and promised to pay for them in $30$ days.

E$2-15($Static$)$ Part $3$

Required: $$

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

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 quipment 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 $1\mathrm{.}3.$

d$.$ Received $$9<mi\; id="EditorElement\_1982456"></mi>$ of supplies and promised to pay for them in $30$ days.

E$2-15($Static$)$ Part $3$

Required:

$3.$ Assuming Business Sim Corporation $($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.

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 quipment 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 $1\mathrm{.}3.$

d$.$ Received $$9<mi\; id="EditorElement\_1981541"></mi>$ of supplies and promised to pay for them in $30$ days.

E$2-15($Static$)$ Part $3$

Required:

$3.$ Assuming Business Sim Corporation $($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.

BUSINESS SIM CORPORATION

Balance Sheet

At September $30$

Expedia, Incorporated, reported total cash of $$8,324$ million at June $30,2022.$ Of this amount, $$2,756$ million was set aside and could

be used only for specific short$-$term purposes, as defined in legal contracts and regulations; $$96$ million was invested in money market

funds and time deposits with original maturities of less than $90$ days; and the remaining $$5,472$ million was held in bank accounts.

Expedia also reported $$26$ million in short$-$term investments $($maturing in $90$ to $360$ days$),$ $$173$ million of deferred revenue, $$2,278$

million of accounts receivable, and $$1,158$ million of prepaid insurance.

TIP: Not all accounts listed are current assets.