Need help ASAP! Accounting question

[Maloo]

Ok, normally I don't have issues with accounting stuff, but my brain is so fried from finals that I can't figure this question out:

On June 1st, a men's clothing store formed. The owner contributed $30,000 from personal savings, and the business borrowed $150,000 from the local bank for start-up expenses. The loan from the bank is due in three years. The store also purchased $100,000 of men's clothing for resale. The entire purchase was on credit due in 30 days. Create the balance sheet for the store on June 1st. Be sure to accurately label sections and items. [Helpful hint: There are five items in total on the balance sheet for this problem] (10 points)

PLEASE HELP MEEEEEE

[YouHearMe?]

It's been a while since I've taken accounting, that was in High School...but we know that there are 5 items on the balance sheet.

Let's look at debits...specifically assets....what is being brought to the business....
$30k from his personal account
$100K merchandise
$150K loan

The loan and the personal money both belong in capital.

Now the credits; You're going to have to credit Accounts Payable for both the loan and the merchandise purchased on credit.

I don't remember what a balance sheet looks like, I'm sorry. I am pretty sure it's the balances on all of the accounts? So I believe capital will end at $180K, plus the $100K merchandise with a total assets balance of $280K ; and then for credits $100K+$150K for the Accounts Payable totaling $250K

I'm not sure how advanced your class is, but in my second year of accounting I'm pretty sure we had to designate which accounts were held receivable, but again, I can't remember if that goes on the balance sheet.

But I just realized that if the personal cash and the money on loan both go in to capital, there will only be 4 accounts. So, look up what the designation is between the two, I'm sorry I really can't remember that tidbit...

Hopefully this at least helps you get going.

Good luck!

[Maloo]

Assets = Liabilities + Stockholders Equity

That's what I thought the formula was for a balance sheet... but I can't get the two sides to equal each other :/

[YouHearMe?]

Okay, sure, so put $30K in cash and $30K in Owner's Equity (that's the account I forgot about)

[YouHearMe?]

Assets
$30K cash
$100K Merchandise
$150K cash

Which will be 2 accounts on the sheet

Liabilities + Equity

$30K Owner's Equity
$100K Accounts Receivable clothing
$150K Accounts Receivable Bank

3 accounts.

Totaling 5 accounts

[Maloo]

Thank you so much!!! You're a lifesaver

[YouHearMe?]

You're welcome
Good luck on finals!

[Maloo]

Thank you, I need all the luck I can get, haha.