Question

DEF 1 The following transactions occurred for Lantana Company during its first month of operations 2 and have been recorded in the T-accounts below. 4 a. Received $50,000 cash from owners in exchange for common stock. 5 b. Purchased land for $20,000, paid $5,000 in cash and signed a 2-year note for the remainder 6 C. Bought $900 of supplies on account. 7 d. Purchased $10,000 of equipment, paying cash. 8 e. Paid $500 on account for supplies purchased in transaction (C). 11 a. Cash 50,000 Supplies 900 C. 5,000 10,000 500 b. d. e. 13 14 bal. 34,500 900 Land 20,000 Equipment 10,000 bal. 20,000 10.000 Note Payable Accounts Payable 500 15,000 b. 900 c. Sheet1 READY

Answer 1

Balance Sheet
Assets					Liabilities and Stockholder's Equity
Current Assets					Current Liabilities
Cash			$ 34,500.00		Accounts Payable					$      400.00
Supplies			$      900.00		Total Current Liabilities					$      400.00
Total Current Assets			$ 35,400.00
					Long term Liabilities
Long-Term Assets					Notes Payable					$ 15,000.00
Land			$ 20,000.00		Total Long term Liabilities					$ 15,000.00
Equipment			$ 10,000.00		Total Liabilities					$ 15,400.00
Total Long term Assets			$ 30,000.00
					Stockholder's Equity
					Common Stock					$ 50,000.00
					Retained Earnings					$               -
					Total Stockholder's Equity					$ 50,000.00
Total Assets			$65,400.00		Total Liabilities and Stockholder's Equity					$65,400.00