The following table shows the balance of certain accounts on the Holmes, Inc. balance sheet at the end of December 31 and the following three-day period. By December 31, the company had not yet started its primary operations. However, they had begun some minor activities:
Balances at the close of…
|
Cash
|
Inventories
|
Fixed Assets*
|
A/P
|
Bank Loan
|
Sh. Equity
|
Dec, 31
|
11,000
|
14,000
|
15,000
|
5,000
|
8,000
|
27,000
|
Jan, 3
|
7,000
|
14,000
|
15,000
|
1,000
|
8,000
|
27,000
|
Jan, 4
|
12,000
|
14,000
|
15,000
|
1,000
|
13,000
|
27,000
|
Jan, 5
|
8,000
|
20,000
|
15,000
|
3,000
|
13,000
|
27,000
|
*Fixed assets is the same as non-current assets.
What activity took place on January 5?