Determining Financial Statement Effects of Several TransactionsThe following events occurr...

Determining Financial Statement Effects of Several Transactions

The following events occurred for Christensen Company:

a. Received investment of $34.000 cash by organizers and distributed stock to them.

b. Purchased $8.000 of equipment, paying $1.000 in cash and signing a note for the rest.

c. Borrowed $9.000 cash from a bank.

d. Loaned $500 to an employee who signed a note.

e. Purchased $15.000 of land: paid $4.000 in cash and signed a mortgage note for the balance.

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. Use the following headings: