Walgreen Company is a well-known drugstore chain. A condensed balance sheet for August 31,

2011, follows ($ in millions):

Use a format similar to Exhibit to analyze the following transactions for the first two days of September ($ amounts are in millions). Then prepare a balance sheet as of September 2.

1. Issued 1,000,000 shares of common stock to employees for cash, $30
2. Issued 1,500,000 shares of common stock for the acquisition of $42 of special equipment from a supplier
3. Borrowed cash, signing a note payable for $13
4. Purchased equipment for cash, $18
5. Purchased inventories on account, $89
6. Disbursed cash on account (to reduce the accounts payable), $35
7. Sold for $2 cash some display equipment at original cost of $2

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Assets Cash Inventories Property and other assets Total 1,556 8,044 17,854 $27,454 Liabilities and Stockholders'Equity Accounts payable Other liabilities Stockholders' equity Total S 4,810 7,797 14,847 $27,454 Description of Transactions Assets Liabilities Owner's Equity Lopez, Cash nventory +EquipmentPayable Payable Capital Merchandise Store Note Accounts (1) Initial investment (2) Loan from ban!k (3) Acquire store equipment +400.000 +400.000 +100,000 = +100,000 15,000 (4) Acquire inventory for cash-120,000 for cash +15,000 = +120,000 +10,000 +30,000 (5) Acquire inventory on credit +10,000 (6) Acquire inventory for cash plus credit (7) Sale of equipment (8) Return of inventory -10,000 +1,000 +20,000 -1,000 acquired on January 6 (9) Payment to creditor Balance ,January 12, 20X2 -800 4,000 352,000 + -800 -4,000 25, 200+ 159,200 + 14.000 100.000 + 400.000 = 525,200 525,200