Question

a. Borrowed $24,000 from a local bank. b. Lent $11,000 to an affiliate; accepted a note due in one year. c. Sold to investors 80 additional shares of stock with a par value of $0.10 per share and a market price of $20 per share; rece cash. d. Purchased $17,000 of equipment, paying $5,600 cash and signing a note for the rest due in one year. e. Declared $1,400 in cash dividends to stockholders, to be paid in February. For each of the preceding transactions, post the effects of the transaction in the appropriate T-accounts. Beginning balances are provided. Cash Beg. Bal. 900 Beg. Bal. (b) Notes Receivable 1,900 11,000 (a) 24,000 End. Bal. 12,900 End. Bal. 24,900 Notes Payable Equipment 25,000 17,000 Beg. Bal. Beg. Bal. (d) 2,500 (b) 11,000 5,600 11,400 End. Bal. 25,000 End. Bal. 8,500 0

Answer 1

Cash Beg Bal $ 900 (a) $24,000 $11,000 (b) $ 1,600 $ 5,600 (d) Beg Bal (b) Notes Receivable $ 1,900 $11,000 End Bal $ 9,900 End Bal $ 12,900 Equipment Beg Bal $25,000 (d) $ 17,000 Beg Bal Notes Payable $ 2,500 $ 24,000 (a) $ 11,400 (d) End Bal $42,000 End Bal $ 37,900 Beg Bal Dividends Payable $ $ 1,400 (e) Beg Bal Common Stock $ 2,400 $ 8 (c) End Bal $ 1,400 End Bal $ 2,408 Beg Bal Additional Paid in capital $ 1,100 $ 1,592 (c) Beg Bal (e) Retained Earnings $ 21,800 $ 1,400 End Bal $ 2,692 End Bal $ 20,400 Note : Please comment down for any further clarifications