Refer to E2-4.
E2-4
The following events occurred for Favata Company:
a. Received $10,000 cash from owners and issued stock to them.
b. Borrowed $7,000 cash from a bank and signed a note due later this year.
c. Bought and received $800 of equipment on account.
d. Purchased land for $12,000; paid $1,000 in cash and signed a long-term note for $11,000.
e. Purchased $3,000 of equipment, paid $1,000 in cash and charged the rest on account
Required:
For each of the events in E2-4, prepare journal entries, checking that debits equal credits.