Question

J.K. Builders was incorporated on July 1. For each of the following transaction for J.K. builders, give the accounting equation effects of the adjustments required at the end of the month on July 31 and compute total assets, total liabilities, and total stockholders' equity. (Enter any decreases to account balances with a minus sign.) a. Received $70,000 cash invested by owners and issued common stock. b. Bought an unused field from a local farmer by paying $60,000 cash. As a construction site for smaller projects, it is estimated to be worth $65,000 to J.K. Builders. C. A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies would have normally sold for $10,000, but the supplier gave J.K. Builders a 10 percent discount. J.K. Builders has not yet received the $9,000 bill from the supplier. d. Borrowed $25,000 from the bank with a plan to use the funds to build a small workshop in August. The loan must be repaid in two years. e. One of the owners sold $10,000 worth of his common stock to another shareholder for $11,000. Assets Liabilities Stockholders' Equity a. b. C. d. Total 0 0 0

Answer 1