Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ag Bio Tech (ABT) was organized on January 1 by four friends. Each organizer invested $8,125 in the company and, in turn, was issued 6,500

image text in transcribed
image text in transcribed
image text in transcribed
Ag Bio Tech (ABT) was organized on January 1 by four friends. Each organizer invested $8,125 in the company and, in turn, was issued 6,500 shares of common stock. To date, they are the only stockholders. During the first month (January), the company had the following five events: a. Collected a total of $32,500 from the organizers and, in turn, Issued common stock. b. Purchased a building for $82,750, equipment for $39,500, and three acres of fand for $23,700; paid $24,750 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 450 shares of his ABT stock had been sold and transferred to another stockholder for $4,500 cash. d. Purchased supplies for $5,900 cash. e. Sold one acre of tand for $7,900 cash to another company. Required: 2. 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. Transaction (a) is shown as an example. 4. Based on the completed spreadsheet, compute total assets, total liabilities, total stockholders' equity, Cash balance, and total current assets at the end of the month. 5. As of January 31, has the financing for ABT's investment in assets primarily come from liabilities or stockholders' equity? Complete this question by entering your answers in the tabs below. 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 qu assessment of their economic effects on ABT, complete the spreadsheet that follows. Transaction (a) is shown as an example. (Enter-any decreases to acco balances with a minus sign.) Complete this question by entering your answers in the tabs below. Based on the completed spreadsheet, compute total assets, total llabilities, total stockholders' equity, Cash balance, and total current assets at the end of the month

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions