Swish Watch Corporation manufactures, sells, and services expensive, ugly watches. The company has been in business for three years. At the end of the most recent year, 2012, the accounting records reported total assets of $2,405,000 and total liabilities of $1,930,000. During the current year, 2013, the following summarized events occurred:

a.

Issued additional shares of stock for $259,000 cash.

b.Borrowed $261,000 cash from the bank and signed a 10-year note.c.A stockholder sold $5,000 of his stock in Swish Watch Corporation to another investor.d.Built an addition on the factory buildings for $350,000 and paid cash to the contractor.e.

Purchased equipment for the new addition for $59,000, paying $19,500 in cash and signing a six-month note for the balance.

f.

Returned a $5,500 piece of equipment, from (e), because it proved to be defective; received a cash refund.