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Marshal Inc. was incorporated as a private company in Germany. During the month of September, the company had the following transactions: a. Borrowed $106,000 cash
Marshal Inc. was incorporated as a private company in Germany. During the month of September, the company had the following transactions: | |||||||||||
a. | Borrowed $106,000 cash from a local bank, payable in two years. | ||||||||||
b. | Bought a factory building for $198,000; paid $90,000 in cash and signed a three-year note for the balance. | ||||||||||
c. | Paid cash for equipment that cost $216,000. | ||||||||||
d. | Purchased supplies for $32,400 on account. | ||||||||||
Required: | |||||||||||
PART 1 | |||||||||||
Analyze transactions (a)(d) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) | |||||||||||
ANALYZE | |||||||||||
Assets | = | Liabilities | + | Stockholders' Equity | |||||||
PART 2 | |||||||||||
Record the transaction effects determined in requirement 1 using a journal entry format. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) | |||||||||||
RECORD | |||||||||||
DATE | Account Titles | Debit | Credit | ||||||||
PART 3 | |||||||||||
Summarize the journal entry effects from requirement 2 using T-accounts. (Mention Debit and Credit on the correct sides along with the totals) | |||||||||||
SUMMARIZE | |||||||||||
Account Name | Account Name | Account Name | |||||||||
Account Name | Account Name | Account Name | |||||||||
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