The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,200 shares of $1 par value common stock with a market price of $30 per share. b. Leased $8,400 of equipment, paying $1,900 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $14,000 cash from a bank. d. Loaned $800 to an employee who signed a note due in six months. e. Purchased $16,909 of land; paid $9,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells blank.

The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,200 shares of $1 par value common stock with a market price of $30 per share. b. Leased $8,400 of equipment, paying $1,900 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $14,000 cash from a bank. d. Loaned $800 to an employee who signed a note due in six months. e. Purchased $16,909 of land; paid $9,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells blank.

Name: ookrinterencesThe following events occurred for Johnson Company:a. Re
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Description: ookrinterencesThe following events occurred for Johnson Company:a. Received investment of cash by organizers and distributed to them 1,200 shares of $1 par value common stock with a marketprice of $30 per share.b. Leased $8,400 of equipment, paying

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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[The following information applies to the questions displayed below.]RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first month. RHC was formed with an investment of $11,900 cash, paid in by the leader of the band on January 3 in exchange for common stock. On January 4, RHC purchased music equipment by paying $2,300 cash and signing an $9,600 promissory note payable in three years. On January 5, RHC booked the band for six concert events, at a price of $2,800 each, but no cash was collected yet. Of the six events, four were completed between January 10 and 20. On January 22, cash was collected for three of the four events. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,800 fee for one of them. On January 27, RHC paid $3,440 cash for the band’s travel-related costs. On January 28, RHC paid its band members a total of $2,490 cash for salaries and wages for the first…
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