Soar Inc. enters into the following transactions:

a.	Stockholders contribute $11,200 cash to a company in exchange for common stock.
b.	The company purchases $5,600 to buy new equipment by paying cash.
c.	The company pays $3,120 to suppliers on account.

A.	Show the effect of these transactions on the basic accounting equation

Transaction Analysis
	Assets		=	Liabilities		+	Stockholders' Equity
a.
b.
c.

B:

a)Record the entry for cash contributed by stockholders, $11,200.

b)Record the purchase of new equipment for $5,600 cash.

c)Record the entry for cash used to payoff accounts payable $3,120.

Transaction

General Journal

Debit

Credit