The following events occurred for Favata Company: a. Received $17,000 cash from owners and issued stock to them. b. Borrowed $14,000 cash from a bank and signed a note due later this year. C. Bought and received $1,500 of equipment on account. d. Purchased land for $26,000; paid $2,400 in cash and signed a long-term note for $23,600. e. Purchased $10,000 of equipment; paid $2,400 in cash and charged the rest on account. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect on the accounting equation. (Enter any decreases to account balances with a minus sign.) Event Assets Liabilities + Stockholders' Equity a. b. C. d. e. Joel Henry founded Bookmart.com at the beginning of August, which sells new and used books online. He is passionate about books but does not have a lot of accounting experience. Help Joel by preparing the accounting equation effects for the following transactions. (Enter any decreases to account balances with a minus sign.) a. The company purchased equipment for $5,800 cash. The equipment is expected to be used for 10 or more years. b. Joel's business bought $8,800 worth of inventory from a publisher. The company will pay the publisher within 45-60 days. c. Joel's friend Sam lent $5,800 to the business. Sam had Joel write a note promising that Bookmart.com would repay the $5,800 in four months. Because they are good friends, Sam is not going to charge Joel interest. d. The company paid $2,400 cash for books purchased on account earlier in the month. e. Bookmart.com repaid the $5,800 loan established in (c). Assets Liabilities + Stockholders' Equity a. b. C. d. e. Total 0 0 Madison Shoes manufactures athletic shoes and sports apparel. The following activities occurred during a recent year. The dollar amounts in (a) and (b) are presented "in millions," and the dollar amount in (c) is per share. When reporting amounts "in millions," exclude the 000,000. a. Purchased $242 in equipment; paid by signing a $5 long-term note and fulfilling the rest with cash. b. Issued $32 in additional common stock for cash contributions made by stockholders. C. Several Madison Shoes investors sold their own stock to other investors on the stock exchange for $130 per share of stock. Required: 1. For each of these events, perform transaction analysis and indicate the account, amount (in millions), and direction of the effect on the accounting equation. Check that the accounting equation remains in balance after each transaction. (Enter any decreases to account balances with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Event Assets Liabilities + Stockholders' Equity a. b. C. Totals 0 0 Sweet Shop Co. is a chain of candy stores that has been in operation for the past ten years. For each of the following transactions give the accounting effects of the adjustments required. (Enter any decreases to account balances with a minus sign.) a. Ordered and received $12,100 worth of cotton candy machines from Candy Makers Inc., which Sweet Shop Co. will pay for in 45 days. b. Sent a check for $6,100 to Candy Makers Inc. for the cotton candy machines from (a). c. Received $500 from customers who bought candy on account in previous months. d. To help raise funds for store upgrades estimated to cost $25,000, Sweet Shop Co. issued 1,100 common shares for $20 each to existing stockholders. e. Sweet Shop Co. bought ice cream trucks for $62,000 total, paying $11,000 cash and signing a long-term note for $51,000. Assets Liabilities + Stockholders' Equity a. b. C. d. e. Total 0 0 For each of the following transactions of Spotlighter, Inc., for the month of January, indicate the accounts, amounts, and direction of the effects on the accounting equation. A sample is provided. (Enter any decreases to account balances with a minus sign.) a. (Sample) Borrowed $5,340 from a local bank on a note due in six months. b. Received $6,030 cash from investors and issued common stock to them. c. Purchased $2,400 in equipment, paying $900 cash and promising the rest on a note due in one year. d. Paid $1,000 cash for supplies. e. Bought and received $1,400 of supplies on account. Assets Liabilities + Stockholders' Equity a. Cash 5,340 Notes Payable (short-term) 5,340 b. C. d. e