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Following are the transactions of JonesSpa Corporation, for the month of January. a. Borrowed $20,500 from a local bank; the loan is due in 9 months. b. Lent $7,200 to an affiliate; accepted a note due in one year. c. Sold to investors 60 additional shares of stock with a par value of $0.10 per share and a market price of $20 per share; received cash. d. Purchased $19,500 of equipment, paying $5,900 cash and signing a note for the rest due in one year. e. Declared $3,900 in cash dividends to stockholders, to be paid in February. For each of the above transactions, indicate the accounts and amounts. A sample is provided. Note: Enter decreases to an element of the balance sheet with a minus sign. a. Cash b. Cash b. Notes receivable C. Cash C. d. Equipment d. Cash e. e. Assets 20,500 = Notes payable Liabilities =Short-term investments 11 = = = Notes payable = Dividends payable 20,500+ Stockholders' Equity + Common stock +Additional paid-in-capital + + +Retained earnings -3,900

Following are the transactions of JonesSpa Corporation, for the month of January. a. Borrowed $20,500 from a local bank; the loan is due in 9 months. b. Lent $7,200 to an affiliate; accepted a note due in one year. c. Sold to investors 60 additional shares of stock with a par value of $0.10 per share and a market price of $20 per share; received cash. d. Purchased $19,500 of equipment, paying $5,900 cash and signing a note for the rest due in one year. e. Declared $3,900 in cash dividends to stockholders, to be paid in February. For each of the above transactions, indicate the accounts and amounts. A sample is provided. Note: Enter decreases to an element of the balance sheet with a minus sign. a. Cash b. Cash b. Notes receivable C. Cash C. d. Equipment d. Cash e. e. Assets 20,500 = Notes payable Liabilities =Short-term investments 11 = = = Notes payable = Dividends payable 20,500+ Stockholders' Equity + Common stock +Additional paid-in-capital + + +Retained earnings -3,900

FINANCIAL ACCOUNTING
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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Following are the transactions of JonesSpa Corporation, for the month of January. a. Borrowed $20,500 from a local bank; the loan is due in 9 months. b. Lent $7,200 to an affiliate; accepted a note due in one year. c. Sold to investors 60 additional shares of stock with a par value of $0.10 per share and a market price of $20 per share; received cash. d. Purchased $19,500 of equipment, paying $5,900 cash and signing a note for the rest due in one year. e. Declared $3,900 in cash dividends to stockholders, to be paid in February. For each of the above transactions, indicate the accounts and amounts. A sample is provided. Note: Enter decreases to an element of the balance sheet with a minus sign. a. Cash b. Cash b. Notes receivable C. Cash C. d. Equipment d. Cash e. e. Assets 20,500 = Notes payable Liabilities =Short-term investments 11 = = = Notes payable = Dividends payable 20,500+ Stockholders' Equity + Common stock +Additional paid-in-capital + + +Retained earnings -3,900
Transcribed Image Text:Following are the transactions of JonesSpa Corporation, for the month of January. a. Borrowed $20,500 from a local bank; the loan is due in 9 months. b. Lent $7,200 to an affiliate; accepted a note due in one year. c. Sold to investors 60 additional shares of stock with a par value of $0.10 per share and a market price of $20 per share; received cash. d. Purchased $19,500 of equipment, paying $5,900 cash and signing a note for the rest due in one year. e. Declared $3,900 in cash dividends to stockholders, to be paid in February. For each of the above transactions, indicate the accounts and amounts. A sample is provided. Note: Enter decreases to an element of the balance sheet with a minus sign. a. Cash b. Cash b. Notes receivable C. Cash C. d. Equipment d. Cash e. e. Assets 20,500 = Notes payable Liabilities =Short-term investments 11 = = = Notes payable = Dividends payable 20,500+ Stockholders' Equity + Common stock +Additional paid-in-capital + + +Retained earnings -3,900
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