Question

The following events occurred for Favata Company: a. Received $17,000 cash from owners and issued stock to them. b. Borrowed $14,000 cash from a bank and signed a note due later this year. C. Bought and received $1,500 of equipment on account. d. Purchased land for $26,000; paid $2,400 in cash and signed a long-term note for $23,600. e. Purchased $10,000 of equipment; paid $2,400 in cash and charged the rest on account. Required: For each of the events (a) through (e), 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.) Event Assets Liabilities + Stockholders' Equity a. b. C. d. e.

Answer 1

Please refer below handwritten notes

Favata company DATE 1- liabilities/ Slovekoldeis equity common store 12.000 12.000 Assets cash Cash (quipment d) Land cash NO 4.000 Accounts 14.000 1,500 6,000 19,400 payable 15.00 Notes payable 3,600 00) e) Equipment Cash 10,000 |(2,400) 163,000 Accounts payable 3.600 46,700 17,000 $ Joel Herry's Bookmart.com Assets Liabilities $ + Stakeholders Equity a) Equipment (5,800 Cash (5,800 b) Inventory 8.800 Accounts payah 8,800 cash 5,800 Notes Poyabr 5,800 Shorties d) Accounts payable 2,400 (9,400) cash e cash (5,800 8,800 Notes payaby 15, 800) .8.800 Madison shoes Liabilities $ Notes Payable Clong form) Animity 3 + Shake holders equity Assets a) Equipment cash 6) cash $ 943 (33 32 common stock 32 37 5 33 plote the sall of stock by madison. shops investors to other investors on stock exchange won't altecat madison shoes book. Because it is a stakeholder sale classmate PAGE

DATE b) Sweet Shop con Assets $ = Liabilities it stakeholders equitry & Machines 12,100 Account Payable 12, 100 Bour C6,10 Account Rugble (6,100) SOO Arcourt Polo (500) Common Stock 23,000 62.000 pot esperimentatie 5,000 51,000 23,000 79,000 Spot Ligher, Inc $ + Stakeholders equity $ Liabilities Notes Payable (Shosttin 5340 common stock 6030 ط Notes payable 1,500 (short term Assets 9 cash 5,340 b) cash 6,030 c) Equipment (2,400 cash (900) d) supplies 1,000 (1,000) e supplies 1,400 (14,270 Accounts Payable 1,400 8,240 16, OBO