To obtain resources, Dr. Lee has contributed his patent in exchange for 125,000 shares of stock, invested $25,000 of his own funds, and convinced friends, colleagues, and relatives to invest an additional $325,000 at $1 per share. What are the resources and claims against resources?
On May 1, a prototyping firm delivered a prototype proof of concept of the product. How should the cost of the prototype be handled in the accounting records?

Think of the accounting equation as a way to frame your answer.

A prototyping firm delivered a prototype proof of concept of the product. How should the cost of the prototype be handled in the accounting records?

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So far what I have is that for the $25,000 investment of his own funds and his friends investment of $325,000, which equal $350,000. I would recognize the $350,000 in cash as debit and credit $350,000 as common stock. For the prototype proof of concept I would show it as research and development expend and credit to cash.