The transactions of the Electronics Appliance Corporation during September 1979 are as follows:

(1) The firm issues 4,000 shares of-$10-par value common stock at par value for cash.

(2) A factory building is leased for the 3 years beginning October 1, 1979. Monthly rental payments are $5,000. Two months’ rent is paid in advance.

(3) Factory equipment costing $27,500 is purchased. A check for $5,000 is issued, and a long-term mortgage liability is assumed for the balance.

(4) The labor costs of installing the new equipment in (3) are $450 and are paid in cash. »

(5) Raw materials are purchased on account for $6,100.

(6) A check for $900 is received from a customer as a deposit on a special order for equipment that Electronics plans to manufacture. The contract price is $4,800.

(7) Office equipment with a list price of $950 is acquired. After deducting a discount of $25, a check is issued in full payment.

(8) The company hires three employees to begin work October |. A cash advance of $200 is given to one of the employees.

(9) The firm’s attorney is given 600 shares of common stock in payment for legal services rendered in the organization of the corporation. The bill for the services is $6,000.

a Enter the transactions in T-accounts. Indicate whether each account is an asset, liability, Or Owners’ equity item. Cross-reference each entry to the appropriate transaction number.

b Prepare a balance sheet for Electronics Appliance Corporation as of September 30, 1979.