Russeck Company, formed by sole proprietor Kal Russeck, is a small manufacturing business that makes model trains to sell to toy stores. It has a small service department that repairs customers' trains for a fee. The company has been in business for five years. At the end of the most recent year, 2009, the accounting records reflected total assets of $500,000 and total liabilities of $200,000. During the current year, 2010, the following summarized events occurred:
(a) Received an additional investment of $100,000 cash from owner Kal Russeck.
(b) Borrowed $120,000 cash from the bank and signed a 10-year note.
(c) Built an addition on the factory for $200,000 and paid cash to the contractor.
(d) 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.
(e) Returned a $3,000 piece of equipment from (d) because it proved to be defective; received a reduction of the note payable.
(f) Purchased a delivery truck (equipment) for $10,000; paid $5,000 cash and signed a ninemonth note for the remainder.
(g) Kal Russeck lent $5,000 of his personal funds to Tom Mallard, his neighbor.
Required:
1. Complete the spreadsheet that follows, using plus ( + ) for increases and minus ( ˆ’ ) for decreases for each account. The first transaction is used as an example.

2. Did you include event ( g ) in the spreadsheet? Why or why not?
3. Based on beginning balances plus the completed spreadsheet, provide the following amounts (show computations):
a. Total assets at the end of the year.
b. Total liabilities at the end of the year.
c. Total owner's equity at the end of the year.
4. As of December 31, 2010, has the financing for Russeck Company's assets primarily come from liabilities or owner's equity?

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Assets Liabilities Owner's Equity CashEqiment Building Notes Payable K. Russeck, Capital +100,000 (a) +100,000