Assets   Cash $ 500 Machinery and equipment 14,500 Suppliers 24,000 Hugues Légaré – Capital 36,000 $ 75,000 Liabilities and equity   Unused parts and supplies $ 32,000 Customers 25,500 Prepaid rents 2,500 Bank loan 15,000 $ 75,000                                         Home work   1

Subject:BusinessPrice: Bought3

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Assets   Cash $ 500 Machinery and equipment 14,500 Suppliers 24,000 Hugues Légaré – Capital 36,000 $ 75,000	Liabilities and equity   Unused parts and supplies $ 32,000 Customers 25,500 Prepaid rents 2,500 Bank loan 15,000 $ 75,000

Home work

 

1.Hugues Légaré started operating an auto repair shop in early November. An inexperienced clerk prepared the following report as at November 30, 2018.

 

 

Work to do

 

1.1 Draw up the corrected balance sheet if you disagree with this presentation.

 

Scenario 2

 

Lucie Belloeuil, optician, opened a clinic on October 1, 2018 by investing $ 8,000 in cash. Ms. Belloeuil was disappointed with the following financial statements, prepared by the bookkeeper.

 

 

LUCIE BELLOEUIL, OPTICIAN BALANCE SHEET OCTOBER 30, 2019
A   Cash $ 1350 Prepaid rents 1,200 Medical supplies used 700 Material 22,800 $ 26,050	Equity     Bank loan $ 12,000 Lucie Belloeuil - Capital 14,050 ______ $ 26,050

 

 

 

 

 

LUCIE BELLOEUIL, OPTICIAN Status of the results OCTOBER 30, 2019
Exploitation product Fees earned $ 10,000. Customers 2,450 Total products 12,450 Exploitation charges Salaries 2,300 Rent 1,200 Unused medical supplies 5,000 Phone 200 Suppliers 4000 Total operating expenses 12,700 Net loss $ 250

 

 

In order to ensure the validity of these financial statements, Ms. Belloeuil asks you to review them.

 

Work to do

 

2.1 Draw up the corrected balance sheet and financial statement of Ms. Lucie Belloeuil, optician.