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Question: Jane receives her $500 scholarship on her transaction bank account (transaction 1). She pays her $250 rent with a cheque (transaction 2) and a $100 food bill with her debit card (transaction 3). She transfers $50 to her saving account (transaction 4).
For each transaction, below the balance sheet,
(a) Draw one balance sheet in which you represent the changes in Jane's balance sheet resulting from each transaction. [Mention precisely which items in the balance sheet are affected; represent the changes with arrows going up or down followed by the appropriate number]. Give a written explanation why the balance sheet is affected that way. [Be careful to not simply repeat in words what can be already seen in the balance sheet. The explanation needs to add value. ]
(b) Calculate Jane's surplus and describe the form(s) that her surplus currently takes. [Provide clear definitions before applying numbers.]
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