Switch watch corporation manufacturer sells and service ugly watches the company has been in business for three years at the end of most recent year, 2006 the accounting record reported total assets of $2,255,000 and total liabilities of 1,780,000 during the current year 2007 the following summarized events occurred
(a) Issued additional shares of stock for $109,00
(b) Borrowed $186,000 cash from the bank and signed a 10 years note
(c) A stockholder sold $5,000 of his capital stock in swish watch corporation to another investor
(d) Build an addition to the factory for $200,000 and paid cash to the construction company.
(e) Purchased equipment for the new addition for $44,000 paying $12,000 cash and signing a six month note for the balance.
(f) Returned a $4,000 piece of equipment, from (e), because it proved to be defective ; received cash refund
Required
1) Complete the spread sheet using (+) for increase and (-) for decrease for each account
2) Did you include event c in the spread sheet
3) Based on the spread sheet and the beginning balances provide the following
A) Total assets at the end of the year
B) Total liabilities at the end of the year
C) Total Stockholder Equity
4) As of December 31, 2007 has the financing for swish watch corporation investment in assets primarily come from liabilities or stockholders Equity?
