On 31 May, After Many Months of Planning, Macy Opened

Multiple Choice

On 31 May, after many months of planning, Macy opened a bike shop by investing $10 000 of his own money. On 31 May he spent 20% of it to pay the rent for three months from 1 June on a store location, and the balance on furnishings and fixtures that had been delivered and set up the night before. A friend had loaned Macy $6000, all of which he used to purchase inventory on 31 May, prior to opening. If Macy prepared a balance sheet as at 31 May, what would be the balances for total assets and total liabilities? Total Assets Total Liabilities

A) $10 000 $6000
B) $14 000 $6000
C) $16 000 $6000
D) $16 000 $10 000