ACCT 201 Principles of Financial Accounting - At the beginning of April, Brooke Winston launched a custom computer programming company called Softways.The company had the following transactions during April:

a.	Brooke Winston invested $75,000 cash, office equipment with a value of $6,000, and $25,000 of computer equipment in the company in exchange for common stock.
b.	Purchased land worth $27,500 for an office by paying $5,000 cash and signing a long-term note payable for the balance.
c.	Purchased a portable building with $30,000 cash and moved it onto the land acquired in b.
d.	Paid $7,500 cash for the premium on a three-year insurance policy.
e.	Provided services to a client and collected $5,400 cash.
f.	Purchased $5,000 of additional computer equipment by paying $2,500 cash and signing a long-term note payable for the balance due.
g.	Completed $5,250 of services for a client on credit.
h.	Purchased $1,000 of additional office equipment from Yukon Office Supply on credit.
i.	Completed services for Johnson and Company for $10,200 on credit.
j.	Received a bill for $650 for rent of a piece of computer equipment used on a recently completed job. The bill is to be paid within 30 days.
k.	Received $5,100 from Johnson and Company for work completed in transaction i.
l.	Semi-Monthly payroll totaled $2,000 and was paid in cash.
m.	Paid $1,000 to Yukon Office Supply for office equipment purchased in transaction h.
n.	Paid $750 for minor repairs on computer equipment.
o.	Paid $1,800 cash for advertising.
p.	Semi-Monthly payroll totaled $2,000 and was paid in cash.
q.	Paid $5,000 cash for dividends.

Required:

 

1. Open the following T-accounts: Cash, Accounts Receivable, Prepaid Insurance, Office Equipment, Computer Equipment, Building, Land, Accounts Payable, Long-Term Notes Payable, Common Stock, Retained Earnings, Fees Earned, Wages Expense, Computer Rental Expense, Advertising Expense, and Repairs Expense.
2. Record the transactions by entering debits and credits directly in the T-accounts. Use transaction letters to identify each debit and credit. Prepare an unadjusted trial balance as of April 30.
3. Calculate the company's debt ratio. Use $140,300 as its total assets amount. Are the company's assets financed more by debt or equity?