An owner invests $1,000,000 to start a firm. S/he then goes to the bank and obtains a $500,000 loan. By the weeks end, the owner has arranged to rent office space for $10,000 per month (to begin next month), has hired two employees who will start work the next month, and has purchased computer equipment and office supplies for $800,000.

Questions:

• What accounting events have occurred that will be seen in financial statements?
• Who owns the computer equipment?