TRANSACTION ANALYSIS AND BUSINESS ACTIVITIES

The accountant for Compton Inc. has collected the following information:
a. Compton purchased a tract of land from Jacobsen Real Estate for $860,000 to be used in its operations.
b. Compton issued 2,000 shares of its common stock to George Micros in exchange for $120,000 cash.
c. Compton purchased a John Deere backhoe for $42,000 on credit.
d. Michael Rotunno paid Compton $8,000 cash for services performed. The services had been performed by Compton several months ago for a total price of $10,000 of which Rotunno had previously paid $2,000.
e. Compton paid its monthly payroll by issuing checks totaling $38,000.
f. Compton declared and paid its annual dividend of $10,000 cash.