Question

The following transactions occurred for Lantana Company during its first month of operations and have been recorded in the T-accounts below.

a). Issued 7,500 shares of stock with a par value $0.10 to three owners (2,500 shares each) for $75000 in cash>

b). Purchased a short term investment for $10,000 in cash.

c). Purchased 2 acres of land for $20,000, paid $5,000 in cash and signed a 2 year note for the remainder.

d). Bought $900 of supplies on account.

e). Sold 1/2 acre of land for $5,000. Accepted a note to receive payment in one year .

f). Purchased $10,000 of equipment in cash.

g). Paid $500 on account for supplies purchased in transaction (d).

FILE HOME INSERT Calibri B I Preparing a classified balance sheet - Excel PAGE LAYOUT FORMULAS DATA REVIEW 11 A A 3 % A Alignment Number Conditional Format as a Formatting Table Style Styles U . Paste Clipboard Font A13 c DEF JK Cash 75,000 b. b. Short-Term Investments 10,000 10,000 5,000 10,000 500 10.000 Notes Receivable Supplies 5,000 sool 5.000 900 Equipment 20,000 5,000 e. f. 10,000 29 bal 15.000 10.000 Recounts Payable 900 d 15,000 C 000 bal 150 bal Attempts)

Answer 1

Balance Sheet of Lantana Company as on 31 Dec 2016
Assets	Amount	Liabilities	Amount
Current Assets		Current Liabilities
Cash	49,500	Accounts Payable	400
Suppliers	900
Notes Receivables	5,000
Short Term Receivables	10,000
Total Current Assets (a)	65,400	Total Current Liabilities (b)	400
Long Term Assets		Long Term Liabilities
Land	15,000	Note Payable	15,000
Equipment	10,000
Total Long Term Assets (c)	25,000	Total Long Term Liabilities (d)	15,000
		Total Liabilities (b + d)	15,400
		Share holders equity
		Common Stock (7500*0.10)	750
		Paid up capital (Excess of par)	74,250
		Total Paid In Capital	75,000
		Retained Earnings	-
		Total Stockholders Equity	75,000
Total Assets	90,400	Total Liabilities & Stock holders Equity	90,400