The ABC Company was established on the 02nd January 2014 and engages in the sale of shoes. The owners of ABC Company Jack Little and Tom Brown both invested $200,000 each on the 02nd January 2014. On the same day they borrowed $100,000 from the bank at an interest rate of 8% per annum.
On 03rd January they bought shoes valued at $100,000 for which they paid $50,000 cash and the balance from their supplier on 30 days credit.
Their Policy is to buy shoes at the end of every quarter valued at $100,000 on the same terms and conditions $50,000 cash and $50,000 credit.
On 02nd January they paid rent for a store on Main Street. The lease agreement is $7,000 per month. For the year 2014 they paid their rent to date and on time. They have also incurred lease hold improvement for the store in the amount of $30,000 (For the month of Jan).
Their wages for the store was $20,000 in 2014, utilities for 2014 was 415,000, telephone for the year 2014 was $6,000, they gave a cash advance to staff at the start of the year valued at $10,000. Furniture and Fixtures were acquired at the beginning of the year valued at $20,000.
No inventory was left at the end of the year and mark up cost was 30%. All sales were on cash (Mark up on cost). Their opening bank balance at the beginning of the year was $0.
Please provide an opening balance sheet as of 02nd January 2014 and closing balance 31st December 2014.