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The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,020 shares of $1 par value
The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,020 shares of $1 par value common stock with a market price of $15 per share. b. Leased $7,800 of equipment, paying $1,800 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $8,000 cash from a bank. d. Loaned $900 to an employee who signed a note due in six months. e. Purchased $17,622 of land; paid $9,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells blank. Stockholders' Equity +Additional paid-in-capital + + Accrued liabilities payable + Event Assets a. Cash Liabilities = Common stock + = a. b. Intangibles = Cash = b. C. Cash = Notes payable + + = C. d. Note receivable = Cash = d. e. e. II = = + Other noncurrent assets + + +
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