Problem:
Can you help me with accounting spreadsheet with the following problem? I think I am trying to make to much into the financial information and continue to miss steps on the accounting spreadsheet and responses.
Overview:
Company organized 1/1/205 by 4 people. Each person invested $10,000 in the company and issued 8,000 shares of stock as the only stockholders. During the 1st 6 months the company had the following events:
*collected total of $40,000 from the organizers and in turn issued the shares of stock.
*purchased a building for $65,000, equipment for $16,000 and 3 acres of land for $12,000; paid $13,000 in cash & signed a note for the balance, to be paid in 15 yrs.
*One stockholder reported to the company that 500 of his stock had been sold & transferred to another stockholder for $5,000 cash
*Purchased supplies for $500 cash
*Sold one acre of land for $4000 cash to another company
*Lent one of the shareholders $5,00 for moving cost, recieved signed 6 month note from the shareholder
Questions:
1 - Was company organized as partnership or corp?
2 - Can you assist with showing how the above items go on a accounting spreadsheet with
Assets (Notes= Cash / Supplies / Receivable / Land / Bldg / Equipment) =
Liabilities (Notes Payable) +
Stockholders Equity (contributed capital & retained earnings)
3 - when completing the spreadsheet do you include the transaction from the selling of 500 shares for $5,000 cash in the spreadsheet?
4- based on the spreadsheet, can you help me understand the following amounts? Total assets at the end of the month, total liabilities at the end of month, total stockholders equity at the end of month, cash balance at end of month, total current assets at end of month
5 - At the end of Jan 31, 2005 did most of the company financing for investments in assets primarily come from liabilities or stockholders equity?