Question: Soar Inc. enters into the following transactions: . Stockholders contribute $11,200 cash to a company in exchange for common stock. The company purchases $5,600 to buy new equipment by paying cash. The company pays $3,120 to suppliers on account. I. Show the effect of these transactions on the basic accounting equation. Transaction Analysis a. Assets = Liabilities Stockholders' Equity + C. II: a) Record the entry for cash contributed by stockholders, $11,200. b) Record the purchase of new equipment for $5,600 cash. c) Record the entry for cash used to payoff accounts payable $3,120. Transaction General Journal Debit Credit
Question: Soar Inc. enters into the following transactions: . Stockholders contribute $11,200 cash to a company in exchange for common stock. The company purchases $5,600 to buy new equipment by paying cash. The company pays $3,120 to suppliers on account. I. Show the effect of these transactions on the basic accounting equation. Transaction Analysis a. Assets = Liabilities Stockholders' Equity + C. II: a) Record the entry for cash contributed by stockholders, $11,200. b) Record the purchase of new equipment for $5,600 cash. c) Record the entry for cash used to payoff accounts payable $3,120. Transaction General Journal Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question:
Soar Inc. enters into the following transactions:
.
Stockholders contribute $11,200 cash to a company in exchange for common
stock.
The company purchases $5,600 to buy new equipment by paying cash.
The company pays $3,120 to suppliers on account.
I. Show the effect of these transactions on the basic accounting equation.
Transaction Analysis
a.
Assets = Liabilities Stockholders' Equity
+
C.
II:
a) Record the entry for cash contributed by stockholders, $11,200.
b) Record the purchase of new equipment for $5,600 cash.
c) Record the entry for cash used to payoff accounts payable $3,120.
Transaction General Journal Debit Credit
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