Exercise 2-41 (Algorithmic) Transaction Analysis and Business Activities The accountant for Compton Inc. has collected the following information: a. Compton purchased a tract of land from Jacobsen Real Estate for $842,000 cash. b. Compton issued 2,000 shares of its common stock to George Micros in exchange for $120,000 cash. c. Compton purchased a John Deere tractor for $58,000 on credit. d. Michael Rotunno paid Compton $8,300 cash for services performed. The services had been performed by Compton several months ago for a total price of $11,300 of which Rotunno had previously paid $3,000. e. Compton paid its monthly payroll by issuing checks totaling $40,750. f. Compton declared and paid its annual dividend of $15,000 cash. Required: 1. Prepare an analysis of the effects of these transactions on the accounting equation of the business. Use the format below. If an amount box does not require an entry, leave the cells blank. Enter decreases in account values as negative numbers. If the effect of a transaction is to increase AND decrease the same item (i.e. Asset, Liability), enter "O" since the net effect on the item is zero. Assets = Liabilities + Stockholders' Equity Contributed Capital Retained Earnings + b. C. d. e. f. 2. Indicate whether the transaction is a financing, investing, or operating activity. a. Compton purchased a tract of land from Jacobsen Real Estate for $842,000 cash. b. Compton issued 2,000 shares of its common stock to George Micros in exchange for $120,000 cash. c. Compton purchased a John Deere tractor for $58,000 on credit. d. Michael Rotunno paid Compton $8,300 cash for services performed. The services had been performed by Compton several months ago for a total price of $11,300 of which Rotunno had previously paid $3,000. e. Compton paid its monthly payroll by issuing checks totaling $40,750. f. Compton declared and paid its annual dividend of $15,000 cash