Whistle Stop Incorporated is a small manufacturing company that makes model trains to sell to toy stores. It has a small service department that repairs customers$$ model trains for a fee. The company has been in business for five years. At the end of the previous year, the accounting records reflected total assets of $$500,000$ and total liabilities of $$200,000.$ During the current year, the following summarized events occurred:

Issued additional shares for $$100,000$ cash.

Borrowed $$120,000$ cash from the bank and signed a ten$-$year note.

Built an addition on the factory for $$200,000$ and paid cash to the contractor.

Purchased equipment for the new addition for $$30,000,$ paying $$3,000$ in cash and signing a note due in six months for the balance.

Returned a $$3,000$ piece of equipment, from $($d$),$ because it proved to be defective; received a reduction of the note payable.

Purchased a delivery truck $($equipment$)$ for $$10,000$; paid $$5,000$ cash and signed a nine$-$month note for the remainder.

A shareholder sold $$5,000$ worth of his shares in Whistle Stop Incorporated to his neighbour.

Required:

$1.$ Complete the spreadsheet given below, for increases and decreased in each account. The first transaction is used as an example. $($Enter any decreases to account balances with a minus sign.$)$

$2-$a$.$ Did you include event $($g$)$ in the spreadsheet?

multiple choice $1$

Yes

No

$2-$b$.$ This part of the question is not part of your Connect assignment.

$3.$ Based on beginning balances plus the completed spreadsheet, provide the following amounts.

$4.$ As of the current year$-$end, has the financing for Whistle Stop$$s investment in assets primarily come from liabilities or shareholders$$ equity?

multiple choice $2$

Liabilities

Shareholders' equity