Assuming the activities in exhibit 1 actually take place prepare a balance sheet as of the completion of item 5. to do so, draw up a basic balance sheet format and make entries to the appropriate accounts for each event. leave sufficient space below each asset, liability, and equity account to make several entries
item number description amount 1 investment by the former patient $50,000 2 equity for dr. black in exchange for patent 25,000 3 purchase of machinery in cash to manufacture the device (estimated life 10 years; no salvage value) 40,000 4 purchase of raw material inventory (in cash) 15,000 5 loan (5 years at 10 percent) 20,000