Question

Check my work The following events occurred for Favata Company a. Received $11,000 cash from owners and issued stock to them b. Borrowed $8,000 cash from a bank and signed a note due later this year. c. Bought and received $900 of equipment on account. d. Purchased land for $14,000; paid $1.200 in cash and signed a long-term note for $12,800 e. Purchased $4,000 of equipment; paid $1,200 in cash and charged the rest on account. Required: For each of the events (a) through lel perform transaction analysis and indicate the account, amount, and direction of the effect on the accounting equation. (Enter any decreases to account balances with a minus sign.) Liabilities Stockholders' Equity Prex 1 of 5 Next >

Answer 1

Events	Assets=		Liabilities+		Equity
a	Cash	$       11,000.00			Common stock	$ 11,000.00
b	Cash	$         8,000.00	Notes payable	$         8,000.00
c	Equipment	$             900.00	Accounts payable	$            900.00
d	Land	$       14,000.00	Notes payable	$      12,800.00
	Cash	$       (1,200.00)
e	Equipment	$         4,000.00	Accounts payable	$         2,800.00
	Cash	$       (1,200.00)