P2- 41A. Analyzing transactions and preparing financial statements. ( LO 3, 5).

After Nate, Maggie, Nicol, and Lindsay finished medical school, they decided to open a new medical prac-tice named New Beginnings. The graduates formed New Beginnings, Inc., as a corporation on January 1, 2011. Each graduate contributed $ 65,000 to the business in exchange for 2,500 shares of common stock. The company signed a note with Noble Bank for an additional $ 120,000. The company used available funds to purchase office space ( building) for $ 216,000. The company also purchased medical equipment on account for $ 139,000, with payment due at the beginning of the following year.