Chec Ag Bio Tech (ABT) was organized on January 1 by four friends. Each organizer invested...

  

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Chec Ag Bio Tech (ABT) was organized on January 1 by four friends. Each organizer invested $6,875 in the company and, in turn, was issued 5,500 shares of common stock. To date, they are the only stockholders. During the first month (January), the company had the following five events: a. Collected a total of $27,500 from the organizers and, in turn, issued common stock. b. Purchased a building for $98,750, equipment for $16,250, and three acres of land for $28,800; paid $12,750 in cash and signed a note for the balance, which is due to be paid in 15 years. c. One stockholder reported to the company that 350 shares of his ABT stock had been sold and transferred to another stockholder for $3,500 cash. d. Purchased supplies for $7,800 cash. e. Sold one acre of land for $9,600 cash to another company. Required: 2. During the first month, the records of the company were inadequate. You were asked to prepare a summary of the preceding transactions. To develop a quick assessment of their economic effects on ABT, complete the spreadsheet that follows. 4. Based on the completed spreadsheet, compute the following amounts: 5. As of January 31, has the financing for ABT'S investment in assets primarily come from lilabilities or stockholders' equity? Complete this question by entering your answers in the tabs below. Required 2 Required 4 Required 5 During the first month, the records of the company were inadequate. You were asked to prepare a summary of the preceding transactions. To develop a quick assessment of their economic effects on ABT, complete the spreadsheet that follows. (Enter any decreases to account < Prev 6 of 6 Next Chec Ag Bio Tech (ABT) was organized on January 1 by four friends. Each organizer invested $6,875 in the company and, in turn, was issued 5,500 shares of common stock. To date, they are the only stockholders. During the first month (January), the company had the following five events: a. Collected a total of $27,500 from the organizers and, in turn, issued common stock. b. Purchased a building for $98,750, equipment for $16,250, and three acres of land for $28,800; paid $12,750 in cash and signed a note for the balance, which is due to be paid in 15 years. c. One stockholder reported to the company that 350 shares of his ABT stock had been sold and transferred to another stockholder for $3,500 cash. d. Purchased supplies for $7,800 cash. e. Sold one acre of land for $9,600 cash to another company. Required: 2. During the first month, the records of the company were inadequate. You were asked to prepare a summary of the preceding transactions. To develop a quick assessment of their economic effects on ABT, complete the spreadsheet that follows. 4. Based on the completed spreadsheet, compute the following amounts: 5. As of January 31, has the financing for ABT'S investment in assets primarily come from lilabilities or stockholders' equity? Complete this question by entering your answers in the tabs below. Required 2 Required 4 Required 5 During the first month, the records of the company were inadequate. You were asked to prepare a summary of the preceding transactions. To develop a quick assessment of their economic effects on ABT, complete the spreadsheet that follows. (Enter any decreases to account < Prev 6 of 6 Next

Answer rating: 100% (QA)

Req 2 Assets Liabilities Stockholders equity Building Equipment ... View the full answer