Laser Delivery Services, Incorporated (LDS January 1. The following transactions occurred during the year: a. Received $36,000 cash from the company's founders in exchange for common stock. b. Purchased land for $10,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $12,000 each; paid $3,500 cash and signed a note due in three years for $20,500 (ignore interest). d. Paid $1,100 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $250,000 cash for a house for his personal use.
Laser Delivery Services, Incorporated (LDS January 1. The following transactions occurred during the year: a. Received $36,000 cash from the company's founders in exchange for common stock. b. Purchased land for $10,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $12,000 each; paid $3,500 cash and signed a note due in three years for $20,500 (ignore interest). d. Paid $1,100 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $250,000 cash for a house for his personal use.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Laser Delivery Services, Incorporated (LDS), was incorporated
January 1. The following transactions occurred during the year:
a. Received $36,000 cash from the company's founders in exchange
for common stock.
b. Purchased land for $10,500, signing a two-year note (ignore
interest).
c. Bought two used delivery trucks at the start of the year at a cost of
$12,000 each; paid $3,500 cash and signed a note due in three
years for $20,500 (ignore interest).
d. Paid $1,100 cash to a truck repair shop for a new motor, which
increased the cost of one of the trucks.
e. Stockholder Jonah Lee paid $250,000 cash for a house for his
personal use.
4. Prepare a classified balance sheet for Laser Delivery Services at December 31,
Include Retained Earnings on the balance sheet even though the account has a
zero balance,
LASER DELIVERY SERVICES, INCORPORATED
Balance Sheet
$
0
0
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