Item$3$

$5$

points

Time Remaining $3$ hours $4$ minutes $59$ seconds$03$:$04$:$59$

eBookHintPrintReferencesCheck my workCheck My Work button is now enabledItem $3$

Time Remaining $3$ hours $4$ minutes $59$ seconds$03$:$04$:$59$

E$2-4($Algo$)$ Determining Financial Statement Effects of Several Transactions LO$2-3$

The following events occurred for Johnson Company:

Received investment of cash by organizers and distributed to them $1,200$ shares of $$1$ par value common stock with a market price of $$5$ per share.

Leased $$8,900$ of equipment, paying $$1,600$ in cash and signing a long$-$term right$-$of$-$use lease for the rest owed.

Borrowed $$13,000$ cash from a bank.

Loaned $$600$ to an employee who signed a note due in six months.

Purchased $$20,712$ of land; paid $$6,000$ 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.