Laser Delivery Services, Inc. (LDS), was incorporated January 1. The following transactions occurred during the year:

1. Received $38,000 cash from the company's founders in exchange for common stock.
2. Purchased land for $11,500, signing a two-year note (ignore interest).
3. Bought two used delivery trucks at the start of the year at a cost of $14,000 each; paid $4,500 cash and signed a note due in three years for $23,500 (ignore interest).
4. Paid $1,300 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.
5. Stockholder Jonah Lee paid $270,000 cash for a house for his personal use.

3. Show the effects of the journal entries by account, using the T-account.

4. Prepare a classified balance sheet for LDS at December 31. Include Retained Earnings on the balance sheet even though the account has a zero balance.

1. Analyze each item for its effects on the accounting equation of LDS for the year ended December 31. (Enter any decreases to account balances with a minus sign.) TIP: Transaction (a) is presented below as an example. TIP: The new motor in transaction (d) is treated as an increase to the cost of the truck. Assets Liabilities Stockholders Equity Cash Equipment Land Accounts Payable Notes Payable (long-term) 0 Common Stock Beg. 0 0 0 0 0 a 38,000 38,000 b. C. d. e. End. VINJULUU Received $38,000 cash from the company's founders in exchange for common stock. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal Cash Equipment Beg. Bal. Beg. Bal. End. Bal. End. Bal. Land Notes Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Common Stock Beg. Bal. LASER DELIVERY SERVICES, INC. Balance Sheet