Question

The following events occurred for Johnson Company: 0.5 points a. Received investment of cash by organizers and distributed to them 1,090 shares of $1 par value common stock with a market price of $10 per share. b. Purchased $8,500 of equipment, paying $1,100 in cash and owing the rest on accounts payable to the manufacturer. c. Borrowed $10,000 cash from a bank. d. Loaned $900 to an employee who signed a note. e. Purchased $17,874 of land; paid $9,000 in cash and signed a note for the balance. eBook Hint Print Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect (+ for increase and - for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction. (If no impact on accounting equation leave cells blank.) References Event Assets Liabilities Stockholders' Equity

Answer 1

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Ans: I Event I Liabilities Assets Cash 1= 10.900 + Stockholder's Equity Common Stock I 1,090 a. Addittimal paid in Capital 9,810 Equipment Accounts Payable 8,500 (1,100) 7,400 Cash I Cash 10,000 I Noles payable | 10,000 I Cash Notes Receivable (900) goo. 117,874 1 Mortgage Notes 8874 (9,000) Land Cash