The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,180 shares of $1 par value common stock with a market price of $5 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 $11,000 cash from a bank. d. Loaned $1,300 to an employee who signed a note due in six months. e. Purchased $16,636 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.

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is