PB$2-1($Algo$)$ Determining Financial Statement Effects of Various Transactions $[$LO $2-1,$ LO $2-2,$ LO $2-5]$

Swish Watch Corporation manufactures, sells, and services expensive watches. The company has been in business for three years. At the end of the previous year, the accounting records reported total assets of $$2,385,000$ and total liabilities of $$1,910,000.$ During the current year, the following summarized events occurred:

Issued additional shares of common stock for $$239,000$ cash.

Borrowed $$251,000$ cash from the bank and signed a $10-$year note.

A stockholder sold $$10,000$ of his stock in Swish Watch Corporation to another investor.

Built an addition on the factory buildings for $$330,000$ and paid cash to the contractor.

Purchased equipment for the new addition for $$57,000,$ paying $$18,500$ in cash and signing a two$-$year note for the balance.

Returned a $$5,300$ piece of equipment, from $($e$),$ because it proved to be defective; received a cash refund.

Required:

$1.$ Complete the spreadsheet that follows. The first transaction is used as an example.

$3.$ Based on beginning balances plus the completed spreadsheet, compute total assets, total liabilities and total stockholders' equity at the end of year.

$4.$ At the end of the current year, has the financing for Swish Watch Corporation$$s investment in assets primarily come from liabilities or stockholders$$ equity?