Grizzly Co. enters into the following transactions: 1. Stockholders contribute $25,000 cash to a company in exchange for common stock. 2. The company purchases $12,500 of new equipment in exchange for its promise to pay $12,500 at the end of next month. 3. The company pays $7,500 to suppliers on account. 4. Borrows $3,200 of cash from the bank by signing a formal agreement to repay the loan in 2 years. Required: Part A: Prepare the journal entries that would be used to record the transactions. Part B: Prepare the company's balance sheet.

Grizzly Co. enters into the following transactions: 1. Stockholders contribute $25,000 cash to a company in exchange for common stock. 2. The company purchases $12,500 of new equipment in exchange for its promise to pay $12,500 at the end of next month. 3. The company pays $7,500 to suppliers on account. 4. Borrows $3,200 of cash from the bank by signing a formal agreement to repay the loan in 2 years. Required: Part A: Prepare the journal entries that would be used to record the transactions. Part B: Prepare the company's balance sheet.

Name: Grizzly Co. enters into the following transactions:1. Stockholders co
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Description: Grizzly Co. enters into the following transactions:1. Stockholders contribute $25,000 cash to a company in exchange for common stock.2. The company purchases $12,500 of new equipment in exchange for its promise to pay$12,500 at the end of next month

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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