Question
. Record the following transactions in the financial statements effects template below. Founder contributes $44,000 in cash in exchange for common stock. Obtain $26,000 short-term
. Record the following transactions in the financial statements effects template below.
- Founder contributes $44,000 in cash in exchange for common stock.
- Obtain $26,000 short-term bank loan.
- Purchase equipment costing $24,000 for cash.
- Purchase inventory costing $14,000 on account.
|
| Balance Sheet | Income Statement
| ||||||||||||
| Transaction | Cash Asset | + | Noncash Assets | = | Liabil- ities | + | Contrib. Capital | + | Earned Capital | Rev-enues |
| Expen-ses | = | Net Income |
| a) |
|
|
| = |
|
|
|
|
|
|
|
| = |
|
| b) |
|
|
| = |
|
|
|
|
|
|
|
| = |
|
| c) |
|
|
| = |
|
|
|
|
|
|
|
| = |
|
| d) |
|
|
| = |
|
|
|
|
|
|
|
| = |
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: Kermit D. Larson, Paul B. W. Miller
5th Edition
0256091935, 978-0256091939
