Reference no: EM132983738

Provide a written response and/or solution to each problem and question in this assignment. You must handwrite your response and turn your work in at the beginning of class. If you are required to complete part of the assignment in Excel, your Excel workbook must be uploaded to coursesite by 10:00am the day this assignment is due. The Big Sports Apparel Company is a small retailer that sells casual and active sportswear. The company just started operations on July 1st 2014.

The following transactions occurred during the company's first month of operations.

a. On July 1st stock was issued to shareholders totaling $100,000.
b. Purchased running shirts and shorts from Nike on account for $30,000 on July 10th. Invoice is due in 15 days.
c. Purchased jackets from a small manufacturer for cash in the amount of $10,000 on July 8 th .
d. Purchased sneakers from Under Armour on account for $40,000 on July 12th. Invoice is due in 10 days.
e. Received the proceeds of a loan totaling $80,000 on July 14th. The terms of the loan require monthly payments over a 3 year period at an annual interest rate of 6%.
f. Purchased supplies for $2,000 in cash on July 15th.
g. Purchased fixtures and cash registers on account for $25,000 on July 15th. The invoice is due in 30 days.
h. Paid the invoice that was received from Under Amour on July 22nd .
i. The company paid for a local radio advertisement in cash for $1,500 on July 22nd.
j. Sold 100 running shirts for $29 and 50 running shorts for $34 in cash on July 15th. The cost of the running shirts sold is $12 each and the cost of the running shorts sold is $18 each.
k. Paid the invoice that was received from Nike on July 25th.
l. Received $20,000 in cash from the Goode Company that is purchasing 625 running shirts on July 20th. A custom logo will be printed on the shirts. Big sports will make three shipments between July 31 st and August 30th .
m. On July 27th sold 50 jackets to a customer on account for a total of $4,900. The cost of the jackets sold is $62.50 each. The invoice is due in 15 days.
n. During the month, sold 200 pairs of sneakers for cash totaling $27,000. The cost of the sneakers sold was $80 each.
o. On July 28th purchased $800 in supplies on account.
p. On July 31st an inventory revealed that $1,200 of supplies was available. .
q. On July 31st the company delivered 200 shirts to the Goode Company. The cost of the shirts delivered is $12 each.
r. On July 31st the total employee wages incurred was $5,000. This will be paid on August 15th .
s. On July 31st the company received utility invoices totaling $1,800.
t. On July 31st the company paid rent for the months of July, August, September, and October for its office and store. The total payment was for $20,000.
u. On July 31st the company paid its monthly tax estimate of $1,300.

Problem 1: Draft a balance sheet as of July 31st for the Big Sports Apparel Company.