Assignment 1 ( Chapter 1 and 2)

Question 1

Question 2

On March 31, 20X1, these transactions and events took place:

1. Purchased merchandise on account, $3,000
2. Sold at cost for $1,000 cash some furniture that was not needed
3. Issued additional capital stock for machinery and equipment valued at $12,000
4. Purchased land for $25,000, of which $10,000 was paid in cash, the remaining being represented
by a 5-year note (long-term debt)

Prepare in good form a balance sheet for March 31, 20X1, showing supporting computations for
all new amounts.