The accountant for Compton Inc. has collected the following information: a. Compton purchased a tract of land

Question:

The accountant for Compton Inc. has collected the following information:
a. Compton purchased a tract of land from Jacobsen Real Estate for $925,000 cash.
b. Compton issued 2,000 shares of its to George Micros in exchange for $110,000 cash.
c. Compton purchased a John Deere tractor for $62,000 on credit.
d. Michael Rotunno paid Compton $8,400 cash for services performed. The services had been performed by Compton several months ago for a total price of $10,000 of which Rotunno had previously paid $1,600.
e. Compton paid its monthly payroll by issuing checks totaling $34,750.
f. Compton declared and paid its annual of $10,000 cash.
Required:
1. Prepare an analysis of the effects of these transactions on the accounting equation of the business. Use the format below.

2. Indicate whether the transaction is a financing, investing, or operating activity.

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