Question

*Suppose 3 friends decided to invest in a company called reliable runner that would sell cars.

Jane put in 20,000, Alan put in 15,000, and Colin put in 15,000. The money was paid into an account.

*The company then obtained a bank loan for 30,000 the money was put in an account

* The company buys a small office (PPE) with a car lot for 55,000

*The company requires some inventory for trading, and it buys 18,000 of seccond hand cars for cash

* the company sold a car for 5000 cash

* The car that sold was bought for 4000

* The company has paid a car repair bill for 250

* Suppose that the company sells another car for 7000 on credit

* the cost of that car sold was 5500

* The company decides to expand its inventory and bought two more cars for 12000 on crediy

Task prepare a balance sheet for reliable runner following GAAP

*

Answer 1

Reliable Runner

Account Form Balance Sheet

Balance Sheet

Asset	Amount	Liabilities	Amount
Current Assets		Current Liabilities
Cash and cash equivalents	11750	Accounts payable
Accounts receivable	7000	Long-term Liabilities
Inventory	20500	Secured long term debt	30000
Long-term Assets		Shareholders' Equity
Tangible fixed assets: Property, Plant and equipment (PPE)	55000	Retained Earnings Common stock	2250 50000
TOTAL ASSETS	94250	TOTAL EQUITY AND LIABILITIES	94250