[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 $34,000 cash from the company's founders in exchange for common stock. b. Purchased land for $12,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $10,000 each; paid $2,000 cash and signed a note due in three years for $18,000 (ignore interest). d. Paid $1,500 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $290,000 cash for a house for his personal use. Required: 1. Analyze each item for its effects on the accounting equation of Laser Delivery Services for the year ended December 31. (Enter any decreases to account balances with a minus sign.) TIP: Transaction (a) is presented below as an example. TIP: The new motor in transaction (d) is treated as an increase to the cost of the truck. Beginning Balance a. b. C d. e Ending Balance Cash 0 34,000 Assets Equipment 0 Land 0= = Liabilities Accounts Payable 0 Notes Payable (long-term) + 0+ + + + + Stockholders' Equity Common Stock 0 34,000
[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 $34,000 cash from the company's founders in exchange for common stock. b. Purchased land for $12,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $10,000 each; paid $2,000 cash and signed a note due in three years for $18,000 (ignore interest). d. Paid $1,500 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $290,000 cash for a house for his personal use. Required: 1. Analyze each item for its effects on the accounting equation of Laser Delivery Services for the year ended December 31. (Enter any decreases to account balances with a minus sign.) TIP: Transaction (a) is presented below as an example. TIP: The new motor in transaction (d) is treated as an increase to the cost of the truck. Beginning Balance a. b. C d. e Ending Balance Cash 0 34,000 Assets Equipment 0 Land 0= = Liabilities Accounts Payable 0 Notes Payable (long-term) + 0+ + + + + Stockholders' Equity Common Stock 0 34,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Vinubhai
![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 $34,000 cash from the company's founders in exchange for common stock.
b. Purchased land for $12,500, signing a two-year note (ignore interest).
c. Bought two used delivery trucks at the start of the year at a cost of $10,000 each; paid $2,000 cash and signed a note
due in three years for $18,000 (ignore interest).
d. Paid $1,500 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.
e. Stockholder Jonah Lee paid $290,000 cash for a house for his personal use.
Required:
1. Analyze each item for its effects on the accounting equation of Laser Delivery Services for the year ended December 31. (Enter any
decreases to account balances with a minus sign.)
TIP: Transaction (a) is presented below as an example.
TIP: The new motor in transaction (d) is treated as an increase to the cost of the truck.
Beginning Balance
a
b.
C
d.
e.
Ending Balance
Cash
0
34,000
Assets
Equipment
0
Land
0=
E
Liabilities
Accounts
Payable
0
Notes
Payable
(long-term)
0
+
+
+
+
Stockholders'
Equity
Common Stock
0
34,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F041e2502-40f7-4ab9-9e59-edc8c9880740%2F2f37df1e-ad47-4639-9fa8-800a174b2dae%2F54d530b_processed.jpeg&w=3840&q=75)
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 $34,000 cash from the company's founders in exchange for common stock.
b. Purchased land for $12,500, signing a two-year note (ignore interest).
c. Bought two used delivery trucks at the start of the year at a cost of $10,000 each; paid $2,000 cash and signed a note
due in three years for $18,000 (ignore interest).
d. Paid $1,500 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.
e. Stockholder Jonah Lee paid $290,000 cash for a house for his personal use.
Required:
1. Analyze each item for its effects on the accounting equation of Laser Delivery Services for the year ended December 31. (Enter any
decreases to account balances with a minus sign.)
TIP: Transaction (a) is presented below as an example.
TIP: The new motor in transaction (d) is treated as an increase to the cost of the truck.
Beginning Balance
a
b.
C
d.
e.
Ending Balance
Cash
0
34,000
Assets
Equipment
0
Land
0=
E
Liabilities
Accounts
Payable
0
Notes
Payable
(long-term)
0
+
+
+
+
Stockholders'
Equity
Common Stock
0
34,000
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