Required information E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4] [The following information applies to the questions displayed below.] 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 $13,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $8,000 each; paid $3,000 cash and signed a note due in three years for $13,000 (ignore interest). d. Paid $1,700 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $310,000 cash for a house for his personal use. E2-12 (Algo) Part 5 5. Using the balance sheet, indicate whether Laser Delivery Services's assets at the end of the year were financed primarily by liabilities or stockholders' equity. O Liabilities O Stockholders' Equity
Required information E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4] [The following information applies to the questions displayed below.] 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 $13,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $8,000 each; paid $3,000 cash and signed a note due in three years for $13,000 (ignore interest). d. Paid $1,700 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $310,000 cash for a house for his personal use. E2-12 (Algo) Part 5 5. Using the balance sheet, indicate whether Laser Delivery Services's assets at the end of the year were financed primarily by liabilities or stockholders' equity. O Liabilities O Stockholders' Equity
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 1EB: Provide journal entries to record each of the following transactions. For each, identify whether the...
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![Required information
E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a
Balance Sheet [LO 2-2, LO 2-3, LO 2-4]
[The following information applies to the questions displayed below.]
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 $13,500, signing a two-year note (ignore interest).
c. Bought two used delivery trucks at the start of the year at a cost of $8,000 each; paid $3,000 cash and signed a note
due in three years for $13,000 (ignore interest).
d. Paid $1,700 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.
e. Stockholder Jonah Lee paid $310,000 cash for a house for his personal use.
E2-12 (Algo) Part 5
5. Using the balance sheet, indicate whether Laser Delivery Services's assets at the end of the year were financed primarily by
liabilities or stockholders' equity.
O Liabilities
O Stockholders' Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48c678a2-3b14-49d7-982a-3e75674a6683%2Fa65e5d2a-5b7b-4bfd-a5d7-23c8ae89bf2d%2Fx59ljnr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a
Balance Sheet [LO 2-2, LO 2-3, LO 2-4]
[The following information applies to the questions displayed below.]
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 $13,500, signing a two-year note (ignore interest).
c. Bought two used delivery trucks at the start of the year at a cost of $8,000 each; paid $3,000 cash and signed a note
due in three years for $13,000 (ignore interest).
d. Paid $1,700 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.
e. Stockholder Jonah Lee paid $310,000 cash for a house for his personal use.
E2-12 (Algo) Part 5
5. Using the balance sheet, indicate whether Laser Delivery Services's assets at the end of the year were financed primarily by
liabilities or stockholders' equity.
O Liabilities
O Stockholders' Equity
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