Question: Southampton Company s balance sheet at November 29 20X1 contained only

Southampton Company’s balance sheet at November 29, 20X1, contained only the following items (arranged here in random order):

On the following day, November 30, these transactions and events occurred:
1. Purchased machinery and equipment for £13,000, paying £4,000 in cash and signing a 90-day note for the balance
2. Paid £7,000 on accounts payable
3. Sold some land that was not needed for cash of £6,000, which was the Southampton
Company’s acquisition cost of the land
4. The remaining land was valued at £240,000 by professional appraisers
5. Issued capital stock as payment for £23,000 of the long-term debt, that is, debt due beyond 1 year
Prepare in good form a balance sheet for November 30, 20X1, showing supporting computations for all new amounts.
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  • CreatedFebruary 20, 2015
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