1 bok E2-4 (Algo) Determining Financial Statement Effects of Several Transactions [LO 2-1, LO 2-2] The following events occurred for Favata Company: a. Received $15,500 cash from owners and issued stock to them. b. Borrowed $12,500 cash from a bank and signed a note due later this year. c. Bought and received $1,350 of equipment on account. d. Purchased land for $23,000; paid $2,100 in cash and signed a long-term note for $20,900. e. Purchased $8,500 of equipment; paid $2,100 in cash and charged the rest on account. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect on the accounting equation. (Enter any decreases to account balances with a minus sign.) Event a C. d d. e. e Assets = = = = = Liabilities + + + + + + Stockholders' Equity

E2-4 (Algo) Determining Financial Statement Effects of Several Transactions [LO 2-1, LO 2-2] The following events occurred for Favato Company: a. Received $15,500 cosh from owners and lssued stock to them. b. Bortowed $12,500 cash from a bank and signed a note due later this yoa: c. Bought and received $1,350 of equipment on account. d. Putchased lend for $23,000; poid $2,100 in cash and signed o long-term noto for $20,900 e. Purchased $8,500 of equipment, poid $2,100 in cash and charged the rest on account. Required: aceounting equation (Enter any decreases to account balances with a minus sign.)