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Rawico Communications operates fifteen radio stations. The following events are representative of those occurring during September. a. Placed an order for office supplies costing
Rawico Communications operates fifteen radio stations. The following events are representative of those occurring during September. a. Placed an order for office supplies costing $2,000; Supplier intends to deliver later in the month. b. Purchased equipment that cost $30,000; paid $10,000 cash and signed a promissory note to pay $20,000 in one month. c. Negotiated and signed a one-year bank loan (note payable), and as a result, deposited $5,000 cash in the company's chequing account. d. Hired a new finance manager on the last day of the month. e. Received an investment of $10,000 cash from the company's owners, in exchange for issuing shares. Supplies ordered in (a) were received, along with a bill for $2,000. 1. Select the specific account, amount, and direction of effects for each transaction on the radio station's accounting equation. (Enter any decreases to account balances with a minus sign.) Event Assets Liabilities b. Equipment Cash c Cash 30,000 Notes payable (short-term) 20,000 (10,000) 5,000 Notes payable (short-term) 5,000 d. B Cash 10,000 f. Supplies 2,000 Accounts payable 37,000 Shareholders' Equity Contributed capital 10,000 2,000 27,000 10,000
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