Ag Bio Tech (ABT) was organized on January 1, 2013, by four friends. Each organizer invested $12,500 in the company and, in turn, was issued 10,000 shares of common stock. To date, they are the only stockholders. During the first month (January 2013), the company had the following five events:
a. Collected a total of $50,000 from the organizers and, in turn, issued the shares of stock.
b. Purchased a building for $89,750, equipment for $31,250, and three acres of land for $37,250; paid $14,750 in cash and signed a note for the balance, which is due to be paid in 15 years.
c. One stockholder reported to the company that 800 shares of his ABT stock had been sold and transferred to another stockholder for $8,000 cash.
d. Purchased supplies for $5,300 cash.
e. Sold one acre of land for $9,700 cash to another company.
Required:
During 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. (TIP: Transaction (a) is presented below as an example.) (Enter all amounts as positive values.)