ork SAVI Required information [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 $50,000 cash from the company's founders in exchange for common stock. b. Purchased land for $17,000, signing a two-year note (ignore interest). c Bought two used delivery trucks at the start of the year at a cost of $15,000 each; paid $2,500 cash and signed a note due in three years for $27,500 (ignore Interest). d. Paid $2,500 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e Stockholder Jonah Lee paid $380,000 cash for a house for his personal use. Required: 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 Common Stock Cash Equipment Land Notes Payable (long-term) Accounts Payable Preu Next ork Saved Required: 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 Common Stock Cash Equipment Land Accounts Payable Notes Payable (long-term) 0 Beg 0 0 0 0 50,000 0 50,000 a. b d End 2. Record the effects of each item using a journal entry. Of no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 Received $50,000 cash from the company's founders in exchange for common stock. Record the transaction. Note: Enter debits before credits Transaction General Journal Debit Credit ord entry Clear entry View general Journal View transaction list Journal entry worksheet Purchased land for $17,000, signing a two-year note (Ignore Interest). Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit b Record entry Clear entry View general journal K Prev 4 5 6 of 18 ! Next > View transaction list Journal entry worksheet 2. 2 3 5 Bought two used delivery trucks at the start of the year at a cost of $15,000 each; paid $2,500 cash and signed a note due in three years for $27,500 (ignore interest). Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal CA Draw NAL View transaction list Journal entry worksheet
