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Required information [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 $37,000 cash from the company's founders in exchange for common stock. b. Purchased land for $14,000, signing a two-year note (ignore Interest). c. Bought two used delivery trucks at the start of the year at a cost of $9,000 each; paid $3,500 cash and signed a note due in three years for $14,500 (Ignore Interest). d. Pald $1,800 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $320,000 cash for a house for his personal use. 3. Show the effects of the journal entries by account, using T-accounts. Beginning Balance Ending Balance Debit Debit Beginning Balance Ending Balance Ending Balance Debit Beginning Balance Cash Land Common Stock Credit Credit Credit Beginning Balance Ending Balance Debit Ending Balance Debit Beginning Balance Equipment Notes Payable Credit Credit

Required information [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 $37,000 cash from the company's founders in exchange for common stock. b. Purchased land for $14,000, signing a two-year note (ignore Interest). c. Bought two used delivery trucks at the start of the year at a cost of $9,000 each; paid $3,500 cash and signed a note due in three years for $14,500 (Ignore Interest). d. Pald $1,800 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $320,000 cash for a house for his personal use. 3. Show the effects of the journal entries by account, using T-accounts. Beginning Balance Ending Balance Debit Debit Beginning Balance Ending Balance Ending Balance Debit Beginning Balance Cash Land Common Stock Credit Credit Credit Beginning Balance Ending Balance Debit Ending Balance Debit Beginning Balance Equipment Notes Payable Credit Credit

FINANCIAL ACCOUNTING
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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Required Information [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 $37,000 cash from the company's founders in exchange for common stock. b. Purchased land for $14,000, signing a two-year note (Ignore Interest). c. Bought two used delivery trucks at the start of the year at a cost of $9,000 each; paid $3,500 cash and signed a note due in three years for $14,500 (Ignore Interest). d. Pald $1,800 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $320,000 cash for a house for his personal use. 3. Show the effects of the journal entries by account, using T-accounts. Beginning Balance Ending Balance Debit Ending Balance Beginning Balance Debit Ending Balance Debit Beginning Balance Cash Land Common Stock Credit Credit Credit Beginning Balance Ending Balance Debit Ending Balance Debit Beginning Balance Equipment Notes Payable Credit Credit
Transcribed Image Text:Required Information [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 $37,000 cash from the company's founders in exchange for common stock. b. Purchased land for $14,000, signing a two-year note (Ignore Interest). c. Bought two used delivery trucks at the start of the year at a cost of $9,000 each; paid $3,500 cash and signed a note due in three years for $14,500 (Ignore Interest). d. Pald $1,800 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $320,000 cash for a house for his personal use. 3. Show the effects of the journal entries by account, using T-accounts. Beginning Balance Ending Balance Debit Ending Balance Beginning Balance Debit Ending Balance Debit Beginning Balance Cash Land Common Stock Credit Credit Credit Beginning Balance Ending Balance Debit Ending Balance Debit Beginning Balance Equipment Notes Payable Credit Credit
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