value 20.00 points Swish Watch Corporation manufactures, sells, and services exp

Question

value 20.00 points Swish Watch Corporation manufactures, sells, and services expensive watches. The company has been in business for three years. At the end of the previous year, the accounting records reported total assets of $2,375,000 and total liabilities of $1,900,000. During the current year, the following summarized events occurred a. Issued additional shares of common stock for $229,000 cash b. Borrowed $246,000 cash from the bank and signed a 10-year note c. A stockholder sold $9,000 of his stock in Swish Watch Corporation to another investor. d. Built an addition on the factory buildings for $320,000 and paid cash to the contractor e. Purchased equipment for the new addition for $56,000, paying $18,000 in cash and signing a six-month note for the balance Returned a $5,200 piece of equipment, from (e), because it proved to be defective; received a cash refund f. Required 1. Complete the spreadsheet that follows, using plus (+) for increases and minus (-) for decreases for each account. The first transaction is used as an example. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity Notes Payable Commorn Stock Retained Earnings Cash Equipment Buildings Beg 229,000 229,000 246,000 246,000

Explanation / Answer

Accounting equation :

Assets = Liabilities + Stockholder's equity Cash Equipment Buildings Notes payable Common Stock Retained earnings a. 229000 229000 b. 246000 246000 c. d -320000 320000 e -18000 56000 38000 f 5200 -5200

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