I have attached a workbook summarizing the journal entries as well as the preparing the balance sheet.
Let me know if you need anything further.
Furniture900Due to Planers0
Moto Van6000paid in capital25000
Due from J Walker & Sons0
Total Assets25000Total liabilities and Equity25000
CR Capital 25000
To record formation of the company.
To record purchase of furniture
CR Current Liability (Planers LTd)7500
To record purchase of Machinery
DR Automobile Moto Van6000
To record purchase of moto van
DR Current Asset (Receivable from J Walker and Sons600
To record sale of furniture to J Walker and Sons
DR Current Liability (Planers Ltd)7500
To record payment to Planers Ltd
CR Current Asset (Recievable from J Walker and Sons600
To record payment from J Walker and sons.
To record purchase of machinery