Reference no: EM133092040

Richard runs a small automobile parts store where he specializes in providing parts for older cars. His company is called 'Re-Store Auto Parts' and he is the sole operator. When he started the company, he put $30,000 of his own money into the company and purchased 5 vehicles for $3,000 each that were not running but he could pull parts out of them to sell. The rest of the money went into rent for space to keep the parts and all other business operations. Richard needs to ensure that his financial transactions are recorded properly and he provides that information to his accountant.

a) Considering Richard's situation, share and define the term we would use to describe his investment into his own company

b) Define each and explain the difference between a balance sheet and a financial statement as applied to Richard's company

c) Analyze three parts of the balance sheet and apply it to Richard's company