(Learning Objective 3: Analyze the impact of business transactions on accounts)Fourth Investments, Inc., began by issuing common stock for cash of $200,000. The companyimmediately purchased computer equipment on account for $56,000.1. Set up the following T-accounts of Fourth Investments, Inc.: Cash, Computer Equipment,Accounts Payable, and Common Stock.2. Record the first two transactions of the business directly in the T-accounts without using ajournal.3. Show that total debits equal total credits.
(Learning Objective 3: Analyze the impact of business transactions on accounts)Fourth Investments, Inc., began by issuing common stock for cash of $200,000. The companyimmediately purchased computer equipment on account for $56,000.1. Set up the following T-accounts of Fourth Investments, Inc.: Cash, Computer Equipment,Accounts Payable, and Common Stock.2. Record the first two transactions of the business directly in the T-accounts without using ajournal.3. Show that total debits equal total credits.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(Learning Objective 3: Analyze the impact of business transactions on accounts)
Fourth Investments, Inc., began by issuing common stock for cash of $200,000. The company
immediately purchased computer equipment on account for $56,000.
1. Set up the following T-accounts of Fourth Investments, Inc.: Cash, Computer Equipment,
Accounts Payable, and Common Stock.
2. Record the first two transactions of the business directly in the T-accounts without using a
journal.
3. Show that total debits equal total credits.
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