Jones Enterprises was started on January 1, Year 1, when it acquired $6,000 cash from creditors and $10,000 from owners. The company immediately purchased land that cost $12,000. The land purchase was the only transaction occurring during Year 1. Required: a. Record the events under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Balance Cash JONES ENTERPRISES Equation + + (12,000) + + $ (12,000) + Accounting Equation Land $ = Creditors = 12,000 = = 12,000 = $ 6,000 + + $ + 6,000 + Stockholders' Equity $ 0

Jones Enterprises was started on January 1, Year 1, when it acquired $6,000 cash from creditors and $10,000 from owners. The company immediately purchased land that cost $12,000. The land purchase was the only transaction occurring during Year 1. Required: a. Record the events under an accounting equation. Note: Enter any decreases to account balances with a minus sign. Balance Cash JONES ENTERPRISES Equation + + (12,000) + + $ (12,000) + Accounting Equation Land $ = Creditors = 12,000 = = 12,000 = $ 6,000 + + $ + 6,000 + Stockholders' Equity $ 0

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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