M2-9 Completing T-Accounts LO2-4

Following are the transactions of Dennen, Inc., for the month of January.

1. Borrowed $30,000 from a local bank.

2. Lent $10,000 to an affiliate; accepted a note due in one year.

3. Sold to investors 100 additional shares of stock with a par value of $0.10 per share and a market price of $5 per share; received cash.

4. Purchased $15,000 of equipment, paying $5,000 cash and signing a note for the rest due in one year.

5. Declared and paid $2,000 in dividends to stockholders.

For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts and determine ending account balances. Beginning balances are provided.