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The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,160 shares of $1 par value common stock with a market price of $15 per share. b. Leased $7,300 of equipment, paying $1,700 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $9,000 cash from a bank. d. Loaned $800 to an employee who signed a note due in six months. e. Purchased $19,383 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 1,160 shares of $1 par value common stock with a market price of $15 per share. b. Leased $7,300 of equipment, paying $1,700 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $9,000 cash from a bank. d. Loaned $800 to an employee who signed a note due in six months. e. Purchased $19,383 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.

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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The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,160 shares of $1 par value common stock with a market price of $15 per share. b. Leased $7,300 of equipment, paying $1,700 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $9,000 cash from a bank. d. Loaned $800 to an employee who signed a note due in six months. e. Purchased $19,383 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. Event a. a. b. b. C. Assets = = = || = = = = Liabilities + Stockholders' Equity + + + + + + + d. = + + = e. + = e. C. d. ة نن
Transcribed Image Text:The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,160 shares of $1 par value common stock with a market price of $15 per share. b. Leased $7,300 of equipment, paying $1,700 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $9,000 cash from a bank. d. Loaned $800 to an employee who signed a note due in six months. e. Purchased $19,383 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. Event a. a. b. b. C. Assets = = = || = = = = Liabilities + Stockholders' Equity + + + + + + + d. = + + = e. + = e. C. d. ة نن
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