value: 1.48 points Ag Bio Tech (ABT) was organized on January 1 by four friends.

Question

value: 1.48 points Ag Bio Tech (ABT) was organized on January 1 by four friends. Each organizer invested $10,000 in the company and, in turn, was issued 8,000 shares of common stock. To date, they are the only stockholders. Dur ing the first month (January), the company had the following five events: a. Collected a total of $40,000 from the organ izers and, in turn, issued the shares of stock b. Purchased a building for $65,000, equipment for S ree acres of la $13,000 in cash and signed a note for the balance, which is due to be paid in 15 years toan feoce ta denotherstocthe500 shares of his ABT stock had been sold and C. Purchased supplies for $3,000 cash e. Sold one acre of land for $6,000 cash to another company. d. Required uring the first month, the records of the company were inadequate. You were asked to prepare a summary of the preceding transactions. To develop a quick assessment of their economic effects on ABT, complete the spreadsheet that follows. (Enter any decreases to account balances with a minu sign.) -Liabilities Notes Payable Assets Stockholders' Equity Common Retained Stock Earnings Cash Supplies Land Building Equipment c. End

Explanation / Answer

Asset Liabilities stockholders equity cash supplies land building equipment note payable common stock retained earnings Beg 0 0 0 0 0 0 0 0 a +40000 [10000*4] 40000 b -13000 +18000 +65000 +16000 +86000 [18000+65000+16000-13000] c +5000 +5000 d -3000 +3000 e +6000 -6000 end 35000 3000 12000 65000 16000 86000 45000 0

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.