Reference no: EM132470666

Glenn Grimes is the founder and president of Heartland Construction, a real estate development venture. The business transactions during February while the company was being organized are listed as follows.

Point 1: Feb.1 Grimes and several others invested $600,000 cash in the business in exchange for 30,000 shares of capital stock.

Point 2: Feb.10 The company purchased office facilities for $330,000, of which $110,000 was applicable to the land and $220,000 to the building. A cash payment of $66,000 was made and a note payable was issued for the balance of the purchase price.

Point 3: Feb.16 Computer equipment was purchased from PCWorld for $13,700 cash.

Point 4: Feb.18 Office furnishings were purchased from Hi-Way Furnishings at a cost of $9,350. A $935 cash payment was made at the time of purchase, and an agreement was made to pay the remaining balance in two equal installments due March 1 and April 1. Hi-Way Furnishings did not require that Heartland sign a promissory note.

Point 5: Feb.22 Office supplies were purchased from Office World for $355 cash.Feb.23 Heartland discovered that it paid too much for a computer printer purchased on February 16. The unit should have cost only $340, but Heartland was charged $385. PCWorld promised to refund the difference within seven days.

Point 6: Feb.27 Mailed Hi-Way Furnishings the first installment due on the account payable for office furnishings purchased on February 18.

Point 7: Feb.28 Received $45 from PCWorld in full settlement of the account receivable created on February 23.

Question 1: Indicate the effects of each transaction on the company's assets, liabilities, and owners' equity for the month of February. The Feb. 1 transaction is provided for you. (Amounts to be deducted should be indicated with minus sign.)