Required information E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4) [The following information applies to the questions displayed below.) Laser Delivery Services, Incorporated (LDS), was incorporated January 1. The following transactions occurred during the year: a. Received $37,000 cash from the company's founders in exchange for common stock. b. Purchased land for $14,000, signing a two-year note (Ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $9,000 each; paid $3,500 cash and signed a note due in three years for $14.500 (ignore interest). d. Paid $1,800 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e Stockholder Jonah Lee paid $320,000 cash for a house for his personal use. E2-12 (Algo) Part 4 4. Prepare a classified balance sheet for Laser Delivery Services at December 31. Include Retained Earnings on the balance sheet even though the account has a zero balance. 0 Required information 4. Prepare a classified balance sheet for Laser Delivery Services at December 31. Include Retained Earnings on even though the account has a zero balance. LASER DELIVERY SERVICES, INCORPORATED Balance Sheet At December 31 Assets Liabilities Current Assets Cash $ 30,000 Notes Payable (long-term) 28,500 Total Liabilities 28,500 Total Current Assets Equipment Land 30,000 19,800 14,000 Stockholders' Equity Common Stock 37,000 Total Assets Total Stockholders' Equity 63,800 Total Liabilities and Stockholders' Equity 37,000 65,500 $ $ Required information E2-12 (Algo) Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4) [The following information applies to the questions displayed below.) Laser Delivery Services, Incorporated (LDS), was incorporated January 1. The following transactions occurred during the year: a. Received $37,000 cash from the company's founders in exchange for common stock. b. Purchased land for $14,000, signing a two-year note (Ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $9,000 each; paid $3,500 cash and signed a note due in three years for $14.500 (ignore interest). d. Paid $1,800 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e Stockholder Jonah Lee paid $320,000 cash for a house for his personal use. E2-12 (Algo) Part 4 4. Prepare a classified balance sheet for Laser Delivery Services at December 31. Include Retained Earnings on the balance sheet even though the account has a zero balance
