Rachel started Mavtech Inc, a computer retail business on September 1, 2015. What follows is description of significant events that affected Mavtech Inc during September 2015. 1. On September 1, Mavtech issued 6000 shares at par to Rachel for cash. The par value of each share is $10.
2. On September 1, Mavtech borrowed $72,000 from a bank. The interest rate on the loan is 10% per annum. Interest is payable every year, the first interest payment being due for payment on September 1, 2016. The principal amount that was borrowed is due in one single repayment on September 1, 2019.
3. On September 1, Mavtech paid $6,000 toward rent on the store for the rest of 2015. The rent includes all utilities.
4. On September 1, Mavtech acquired furniture and fixtures for $14,000 and made a down payment of $3,000. The remaining payment will be made in October. The furniture and fixtures have an estimated useful life of 5 years, at the end of which they are expected to be sold for $2,000.
5. On September 1, Mavtech acquired 4 cash registers for $6,000 in cash. This equipment has a useful life of 3 years after which they are expected to be sold for $600.
Required:
prepare a Balance sheet dated september 30,1995 and the income statement for september 1995.