Question

Laser Delivery Services, Inc. (LDS) was incorporated January 1. The following transactions occurred during the year: a. Received $28,000 cash from the company's founders in exchange for common stock. b. Purchased land for $9,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $10,000 each; paid $2,500 cash and signed a note due in three years for $17,500 (ignore interest). d. Paid $900 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $230,000 cash for a house for his personal use.

Answer 1

2)

		Debit	Credit
a	Cash	$ 28,000.00
	Common Stock		$ 28,000.00
b	Land	$    9,500.00
	Notes Payable		$    9,500.00
c	Equipment	$ 20,000.00
	Cash		$    2,500.00
	Notes Payable		$ 17,500.00
d	Equipment	$        900.00
	Cash		$        900.00
e	No Entry

3)

Cash
Beg Bal
a	$ 28,000.00	$    2,500.00	c
		$        900.00	d
End Bal	$ 24,600.00
Equipment
Beg Bal
c	$ 20,000.00
d	$        900.00
End Bal	$ 20,900.00
Land
Beg Bal
b	$    9,500.00
End Bal	$    9,500.00
Notes Payable
Beg Bal
		$    9,500.00	b
		$ 17,500.00	c
End Bal		$ 27,000.00
Common Stock
Beg Bal
		$ 28,000.00	a
End Bal		$ 28,000.00

Laser Delivery Services Inc
Balance Sheet
At the end of December
Notes Payable	$           27,000.00	Land	$    9,500.00
		Equipment	$ 20,900.00
		Total Non Current assets	$ 30,400.00
Common Stock	$           28,000.00	Cash	$ 24,600.00
Total Liabities and shareholders equity	$           55,000.00	Total assets	$ 55,000.00