Assume all beginning balances are zero

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Prepare T- accounts. assume all beginning balances are zero. Business Sim Corporation (BSC) entered into the following four transactions: (a) Issued 1,000 common shares to Kelly in exchange for $10,000. (b) Borrowed $31,000 from the bank, promising to repay it in two years. (c) Bought computer equipment by signing check number 101 in the amount of $36,000 and signing a promissory note for $3,000 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 1.4. (d) Received $500 of supplies and promised to pay for them in 30 days.

Reference no: EM133971711

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