E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4]Skip to question [The following information applies to the questions displayed below.] Laser Delivery Services, Incorporated (LDS), was incorporated January 1. The following transactions occurred during the year:Received $35,000 cash from the company's founders in exchange for common stock.Purchased land for $10,000, signing a two-year note (ignore interest).Bought two used delivery trucks at the start of the year at a cost of $11,000 each; paid $3,000 cash and signed a note due in three years for $19,000 (ignore interest).Paid $1,000 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.Stockholder Jonah Lee paid $240,000 cash for a house for his personal use. E2-12 (Algo) Part 3Show the effects of the journal entries by account, using T-accounts. CashEquipmentDebitCreditDebitCreditBeginning BalanceBeginning Balanceа.35,000С.22,000с.3,000d.1,000d.1,000Ending Balance31,000Ending Balance23,000LandNotes PayableDebitCreditDebitCreditBeginning Balanceb.Beginning Balance10,000b.10,000С.1,000Ending Balance10,000Ending Balance11,000Common StockDebitCreditBeginning Balancea.35,000Ending Balance35,000*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

Name: E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; P
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Description: E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4]Skip to question [The following information applies to the questions displayed below.] Laser Delivery Services, In

>Accounting cycle is the flow or steps carried out to complete the accounting process. These are…

Answered: aser Delivery Services, Incorporated…

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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E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4]

Skip to question

[The following information applies to the questions displayed below.]

Laser Delivery Services, Incorporated (LDS), was incorporated January 1. The following transactions occurred during the year:

Received $35,000 cash from the company's founders in exchange for common stock.
Purchased land for $10,000, signing a two-year note (ignore interest).
Bought two used delivery trucks at the start of the year at a cost of $11,000 each; paid $3,000 cash and signed a note due in three years for $19,000 (ignore interest).
Paid $1,000 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.
Stockholder Jonah Lee paid $240,000 cash for a house for his personal use.

E2-12 (Algo) Part 3

Show the effects of the journal entries by account, using T-accounts.

Cash
Equipment
Debit
Credit
Debit
Credit
Beginning Balance
Beginning Balance
а.
35,000
С.
22,000
с.
3,000
d.
1,000
d.
1,000
Ending Balance
31,000
Ending Balance
23,000
Land
Notes Payable
Debit
Credit
Debit
Credit
Beginning Balance
b.
Beginning Balance
10,000
b.
10,000
С.
1,000
Ending Balance
10,000
Ending Balance
11,000
Common Stock
Debit
Credit
Beginning Balance
a.
35,000
Ending Balance
35,000
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

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