Transaction Analysis and Business Activities OBJECTIVE 3 The accountant for Huron Corporation has collected the following information:

a. Huron purchased a tract of land from Jacobsen Real Estate for \(\$ 925,000\) cash.

b. Huron issued 2,000 common shares to George Micros in exchange for \(\$ 110,000\) cash.

c. Huron purchased a John Deere tractor for \(\$ 62,000\) on credit.

d. Michael Rotunno paid Huron \(\$ 8,400\) cash for services performed. The services had been performed by Huron several months ago for a total price of \(\$ 10,000\), of which Rotunno had previously paid \(\$ 1,600\).

e. Huron paid its monthly payroll by issuing cheques totalling \(\$ 34,750\).

f. Huron declared and paid its annual dividend of \(\$ 10,000\) cash.

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1. Prepare an analysis of the effects of these transactions on the basic accounting equation of the business. Use the format below.

2. Indicate whether the transaction is a financing, investing, or operating activity.
Exercise

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Assets == Liabilities Shareholders' Equity Share Retained Capital Earnings