HRM732 Individual Assignment #1

Individual Assignment #1 (40 Marks) 15% of the overall grade for the course
Ron Abrams has come into your office for his weekly 1 on 1 in which you update him on your weekly progress on
your projects. He has arrived with a stack of paperwork in his hands and a befuddled look on his face. You ask
what’s going on and he responds as follows. “Last year, as you know, we purchased a bankrupt, closed down
bottling facility in The Ukraine. I don’t know if you know this but in countries other than Canada they are using
somewhat different accounting policies than we do, and the reports I have for the first few months of operations
for that location look nothing like anything I have seen before. I’m aware that the company made no money this
month as it’s had no sales or operations, but I cannot understand our capital position. I’m leaving you with a new
project. I know you’ve been learning accounting so I want you to take the opening information for the business
from the date of purchase and come up with the balance sheet as it should appear to me as a Canadian Reader.”
You are somewhat puzzled with this new challenge, yet flattered at the same time, and agree to take it on.
Given:
The newly purchased firm was bought on November 1. At inception the balance sheet accounts of the firm were as
follows:
Account Name
Accounts Payable
Accounts Receivable
Land
Building
Equipment
Cash
Notes Payable

$
85,000
67,000
490,000
320,000
175,000
2,200
60,000

Account Name
Bonds Payable (Over 1 Year)
Share Capital
Furniture and Fixtures
Wages Payable
Bottle Processing Patent Fee's Payable
Taxes Payable
Bottle Inventory

$
45,000
936,200
15,000
55,000
25,000
58,000
195,000

During the month of November the following transactions occurred:
Accounts Receivable for $16,000 was collected.
Wages due of $15,000 were paid out in cash.
$175,000 in Equipment was purchased on credit ($100 was due on delivery and was paid in cash).
Their land was appraised and found to be worth $560,000.
A stakeholder, Bruce Wayne, provided the company with equipment and in return received $65,000 in shares.
$300,000 in shares was retired for bonds payable on December 15, 2025.
Bottle Processing Patent Fees were paid completely out on Credit.
$175,000 in Old Bottles was returned to the former supplier for their cash value.
A bank loan for $65,000 was taken out. The amount was kept in cash over the end of the month.
Required:
Create a Balance Sheet for November 30th assuming no other transactions occurred for the month other than
those noted above.
1-Conversion to Canadian Balance Sheet and T-Accounts (17 marks)
2- Final Balance Sheet (23 Marks)