The following table shows the balance of certain accounts on the Holmes, Inc. balance sheet at...

 

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The following table shows the balance of certain accounts on the Holmes, Inc. balance sheet at the end of December 31 and the following three-day period. By December 31, the company had not yet started its primary operations. However, they had begun some minor activities: Balances at the close of... Dec, 31 Jan, 3 Jan, 4 Jan, 5 Cash 11,000 7,000 12,000 8,000 Inventories 14,000 14,000 14,000 20,000 *Fixed assets is the same as non-current assets. • What activity took place on January 5? O They purchased more inventory. O They paid their suppliers. They repaid the bank loan. They borrowed additional money from the bank. Fixed Assets* 15,000 15,000 15,000 15,000 A/P Bank Loan 5,000 8,000 1,000 8,000 1,000 13,000 3,000 13,000 Sh. Equity 27,000 27,000 27,000 27,000 The following table shows the balance of certain accounts on the Holmes, Inc. balance sheet at the end of December 31 and the following three-day period. By December 31, the company had not yet started its primary operations. However, they had begun some minor activities: Balances at the close of... Dec, 31 Jan, 3 Jan, 4 Jan, 5 Cash 11,000 7,000 12,000 8,000 Inventories 14,000 14,000 14,000 20,000 *Fixed assets is the same as non-current assets. • What activity took place on January 5? O They purchased more inventory. O They paid their suppliers. They repaid the bank loan. They borrowed additional money from the bank. Fixed Assets* 15,000 15,000 15,000 15,000 A/P Bank Loan 5,000 8,000 1,000 8,000 1,000 13,000 3,000 13,000 Sh. Equity 27,000 27,000 27,000 27,000

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The detailed answer for the above question is provided below On January 5 the activi... View the full answer