During the year, the Flight Company experienced the following accounting transactions: 1. Issued common stock in the amount of $150,000 2. Paid a $30,000 cash dividend 3. Borrowed $25,000 from a bank 4. Made a principal payment of $3,500 on an outstanding bank loan 5. Made an interest payment of $1,200 on an
During the year, the Flight Company experienced the following accounting transactions: 1. Issued common stock in the amount of $150,000 2. Paid a $30,000 cash dividend 3. Borrowed $25,000 from a bank 4. Made a principal payment of $3,500 on an outstanding bank loan 5. Made an interest payment of $1,200 on an
Chapter1: Financial Statements And Business Decisions
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Recording Transactions with the
During the year, the Flight Company experienced the following accounting transactions:
1. Issued common stock in the amount of $150,000
2. Paid a $30,000 cash dividend
3. Borrowed $25,000 from a bank
4. Made a principal payment of $3,500 on an outstanding bank loan
5. Made an interest payment of $1,200 on an outstanding bank loan
Using the accounting equation, record each of the transactions in columnar format using the following template:
Use negative signs with answers, when appropriate.
| Assets | = | Liabilities | + | ||||
|---|---|---|---|---|---|---|---|
| Cash | = | Notes payable | + | Common stock | + | ||
| 1 | Answer
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= | Answer
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+ | Answer
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+ | Answer
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| 2 | Answer
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= | Answer
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+ | Answer
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+ | Answer
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| 3 | Answer
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= | Answer
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+ | Answer
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+ | Answer
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| 4 | Answer
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= | Answer
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+ | Answer
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+ | Answer
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| 5 | Answer
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= | Answer
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+ | Answer
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+ | Answer
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