Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help me solve please The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,140 shares of

Help me solve please

image text in transcribed
The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,140 shares of $1 par value common stock with a market price of $10 per share. b. Leased $7,900 of equipment, paying $1,300 in cash and signing a long-term right-of-use lease for the rest owed. c..Borrowed $10,000 cash from a bank. d. Loaned $1,400 to an employee who signed a note due in six months. e. Purchased $15,427 of land; paid $8,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells blank. x Answer is not complete. Event Assets Liabilities + Stockholders' Equity a Cash 10,000 X = + Common stock 1,000 X + Additional paid-in-capital 39,000 X Intangibles X 15,000 X = + b Cash (3,000) X = + C. Cash 10,000 = Notes payable 10,000 + C. + d. Note receivable V 800 X E + Cash (800) X = + e Land 13,000 X = Notes payable 9,000 X + e Cash (4,000) X +

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Karen W. Braun, Wendy M. Tietz

7th Edition

0137858515, 9780137858514

Students also viewed these Accounting questions