a Received $17,000 cash from owners and issued stock to them b. Borrowed $14,000 cash from a bank and signed a note due later this year. c. Bought and received $1,500 of equipment on account. d. Purchased land for $26.000; paid $2,400 in cash and signed a long-term note for $23,600. e. Purchased $10,000 of equipment; paid $2,400 in cash and charged the rest on account. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect on the accounting equation. (Enter any decreases to account balances with a minus sign.) Event a b. C. d. d. e e Cash Cash Equipment Land Equipment Assets 3000 17,000 = 14,000. 1,500 26,000 = 10,000 = Answer is not complete. Liabilities Notes Payable (short-term) Accounts Payable Notes Payable (long-term) Accounts Payable 14,000 1,500+ 23,600+ 7.600 + Stockholders' Equity Common Stock Cash 17,000 2.400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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S12

a Received $17,000 cash from owners and issued stock to them.
b. Borrowed $14,000 cash from a bank and signed a note due later this year.
c. Bought and received $1,500 of equipment on account.
d. Purchased land for $26.000; paid $2,400 in cash and signed a long-term note for $23,600.
e. Purchased $10,000 of equipment, paid $2,400 in cash and charged the rest on account.
Required:
For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect on the
accounting equation. (Enter any decreases to account balances with a minus sign.)
Event
a
b
C.
d.
d.
e
e
Cash
Cash
Equipment
Land
Equipment
Assets
3000
17,000 =
14,000.
1,500
26,000 -
10,000 =
Answer is not complete.
Accounts Payable
Liabilities
Notes Payable (short-term)
Accounts Payable
Notes Payable (long-term)
14,000
1,500+
23,600+
+
7.600+
Stockholders' Equity
Common Stock
Cash
17,000
2.400
Transcribed Image Text:a Received $17,000 cash from owners and issued stock to them. b. Borrowed $14,000 cash from a bank and signed a note due later this year. c. Bought and received $1,500 of equipment on account. d. Purchased land for $26.000; paid $2,400 in cash and signed a long-term note for $23,600. e. Purchased $10,000 of equipment, paid $2,400 in cash and charged the rest on account. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect on the accounting equation. (Enter any decreases to account balances with a minus sign.) Event a b C. d. d. e e Cash Cash Equipment Land Equipment Assets 3000 17,000 = 14,000. 1,500 26,000 - 10,000 = Answer is not complete. Accounts Payable Liabilities Notes Payable (short-term) Accounts Payable Notes Payable (long-term) 14,000 1,500+ 23,600+ + 7.600+ Stockholders' Equity Common Stock Cash 17,000 2.400
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