Seventh Investments, Inc., began by issuing common stock for cash of $140,000. The company immediately purchased computer

Question:

Seventh Investments, Inc., began by issuing for cash of $140,000. The company immediately purchased computer equipment on account for $100,000.
1. Set up the following T-accounts of Seventh Investments, Inc.: Cash, Computer Equipment, Accounts Payable, Common Stock.
2. Record the first two transactions of the business directly in the T-accounts without using a journal.
3. Show that total debits equal total credits.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...