Assumption for initial balance sheet:

Here are the journal entries and the updated balance sheet.

Assumption for initial balance sheet:
The provided draft balance sheet has an inconsistency where Total Assets (S760,000) minus Total Liabilities (S240,000 Current + S200,000 Noncurrent = S440,000) equals S320,000, but Net Assets and Total Shareholders' Equity are stated as S520,000. To ensure the balance sheet balances (Assets = Liabilities + Equity), it is assumed that the Total Liabilities should be S240,000 (i.e., the Noncurrent Liabilities of S200,000 are disregarded or assumed to be zero