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The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,190 shares of $1 par value
The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,190 shares of $1 par value common stock with a market price of $10 per share. b. Purchased $8,400 of equipment, paying $1,800 in cash and owing the rest on accounts payable to the manufacturer. c. Borrowed $10,000 cash from a bank. d. Loaned $600 to an employee who signed a note. e. Purchased $18,631 of land; paid $5,000 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, amount, and direction of the effect (+ for increase and - for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction. (If no impact on accounting equation leave cells blank.) Event a. b C d. e Assets Liabilities Stockholders' Equity
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