Question
Recording the Effects of Transactions Delta Corporation was organized on December 1 of the current year and had the following account balances at December 31,
Recording the Effects of Transactions
Delta Corporation was organized on December 1 of the current year and had the following account balances at December 31, listed in tabular form.
Early in January, the following transactions were carried out by Delta Corporation.
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Sold capital stock to owners for $48,000.
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Purchased land and a small office building for a total price of $96,000, of which $36,000 was the value of the land and $60,000 was the value of the building. Paid $12,000 in cash and signed a note payable for the remaining $84,000.
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Bought several computer systems on credit for $9,600 (30-day open account).
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Obtained a loan from 2nd Bank in the amount of $14,400. Signed a note payable.
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Paid $7,200 of account payable due as of December 31.
Instructions
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List the December 31 balances of assets, liabilities, and owners equity in tabular form as shown.
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Record the effects of each of the five transactions in the format illustrated in Chapter 2 of the text. Show the totals for all columns after each transaction.
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