Mallard incorporated (mi) is a small manufacturing company that makes model trains to sell to toy stores. it has a small service department that repairs customers’ trains for a fee. the company has been in business for five years. at the end of the previous year, the accounting records reflected total assets of $610,000 and total liabilities of $255,000. during the current year, the following summarized events occurred: issued additional shares of common stock for $125,000 cash. borrowed $163,000 cash from the bank and signed a 10-year note. built an addition on the buildings for $249,000 and paid cash to the contractor. purchased equipment for the new addition for $39,500, paying $3,950 in cash and signing a note for the balance due in two years. returned a $3,950 piece of equipment, from (d), because it proved to be defective; received a reduction of the notes payable. purchased a delivery truck (equipment) for $31,000; paid $21,700 cash and signed a two-year note for the remainder. a stockholder sold $9,950 of his stock in mallard incorporated to his neighbor.