Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi! This is a four part question with the nescecary information at the top, I know its a lot but I could really use someones

Hi! This is a four part question with the nescecary information at the top, I know its a lot but I could really use someones help. Please.

image text in transcribedimage text in transcribedimage text in transcribed

image text in transcribed

E2-12 Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4] The following information applies to the questions displayed below Laser Delivery Services, Inc. (LDS) was incorporated January 1. The following transactions occurred during the year: a. Received $27,000 cash from the company's founders in exchange for common stock. b. Purchased land for $9,000, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $9,000 each; paid $2,000 cash and signed a note due in three years for $16,000 (gnore interest d. Paid $800 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $220,000 cash for a house for his personal use. References Section Break E2-12 Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4] alue: 0.00 points E2-12 Part 1 1. Analyze each item for its effects on the accounting equation of LDS. (Enter any decreases to account balances with a minus sign.) TIP: The new motor in transaction (d) is treated as an increase to the cost of the truck. Liabilities Accounts Notes Cash Equipment Land Beg b, d. 8. 10.00 points E2-12 Part 2 2. Record the effects of each item using a journal entry. (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Received $27,000 cash from the company's founders in exchange for common stock. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal alue: 10.00 points E2-12 Part 3 3. Show the effects of the journal entries by account, using the T-account. Cash Equipment Beg. Bal End. Bal Land Notes Payable Beg. Bal. End. Bal. Common Stock 10.00 points E2-12 Part 4 Retained earnings with a zero balance in the appropriate section LASER DELIVERY SERVICES, INC. Balance Sheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Creative And Innovative Auditing

Authors: Jeffrey Ridley

1st Edition

1472474627, 9781472474629

More Books

Students also viewed these Accounting questions

Question

What are the essential components of a futures contract?

Answered: 1 week ago

Question

=+a. Consumer-Focused show benefits.

Answered: 1 week ago