E2-4 Determining Financial Statement Effects of Several Transactions LO2-3 The following events occurred for Johnson Company: a Received investment of $40,000 cash by organizers and distributed 1,170 shares of $1 par value common stock to them. Purchased $7,500 of equipment, paying $1,500 in cash and signing a note for the rest. c. Borrowed $11,000 cash from a bank. d. Loaned $900 to an employee who signed a note. Purchased $23,094 of land; paid $6,000 in cash and signed a mortgage note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect (+ for increase and - for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction. (If no impact on accounting equation leave cells blank.) Transaction Assets Liabilities Stockholders' Equity 40,000 Equipment 7,500 Notes payable Cash 11,000 Notes payable d. Cash Land 23,094 Mortgage notes payable