QUESTION 3: Balance sheet Masaki Meguro opened the Meguro House of Travels Ltd company on 1 April 2020 in Japan. Meguro House of Travels Ltd incurred the following transactions for the first two weeks of operation in April: Date Transaction 2-April Masaki deposited 800,000,000 into the newly opened business bank account, 4-April The company purchased land for $200,000,000 and an office building for 75,000,000 7-April The company purchased 250,000 of office supplies from Office Essentials Ltd, paying 25% of the balance on 17 April and the remaining 75% on 17 May. 11-April The company paid #1.500,000 for five years for a full insurance policy to cover the business building. 12-April Masaki purchased and moved to a new apartment in Yokohama. The apartment costs 300,000,000 15-April Hitoshi Yamada, a good friend of Masaki, is a property valuer. Hitoshi conducted a free valuation of the land which Meguro House of Travels Ltd purchased on 4 April, and determined the new market value of the land in Japan as of 15 April was 625,000,000. 17-April The company paid Office Essential Ltd 25% of the amount owed for the supplies purchased on 7 April 17-April Masaki withdrew $5,000,000 from the company for personal use. The possible accounts to record the above transactions are provided as follows: Cash, Office Supplies, Prepaid Insurance, Apartment, Land, Building, Office Equipment, Accounts Payable, Inventory, Dividends, Motor Vehicle, Accounts Receivable, Loan Receivable, and Masaki Capital. Required: (a) Use WORKSHEET 1 on page 7 to show how the above accounting events will affect the balance sheet equation. You may recreate the worksheet in your answer script. (15 marks) (b) Prove the balance sheet equation. (2 marks) (c) Use WORKSHEET 2 on page 8 to prepare a balance sheet for the company as at 17 April 2020. You may recreate the worksheet in your answer script (8 marks) (Total for question 3: 25 marks) Date Meguro House of Travels Ltd Balance Sheet As at 17 April 2018 (000) (000) Assets Current assets Non-current assets Total assets Liabilities and equity Current liabilities Equity Total liabilities and equity