a. Received investment of cash by organizers and distributed to them 1,190 shares of $1 par value common stock with a market price of $5 per share. b. Leased $7,100 of equipment, paying $1,400 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $8,000 cash from a bank. d. Loaned $1,300 to an employee who signed a note due in six months. e. Purchased $23,601 of land; paid $6,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction.

a. Received investment of cash by organizers and distributed to them 1,190 shares of $1 par value common stock with a market price of $5 per share. b. Leased $7,100 of equipment, paying $1,400 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $8,000 cash from a bank. d. Loaned $1,300 to an employee who signed a note due in six months. e. Purchased $23,601 of land; paid $6,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction.

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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