E212 Analyzing the Effects of Transactions Using TAccounts P

E2-12 Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting [The following information applies to the questions displayed below Laser Delivery Services, Inc. (LDS) was incorporated January 1. The following transactions pccurred during the year: a. Received $45,000 cash from the company\'s founders in exchange for common stock. b. Purchased land for $16,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $14,000 each; paid $2,000 cash and signed a note due in three years for $26,000 (ignore interest). d. Paid $2,000 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $370,000 cash for a house for his personal use. References E2-12 Analyzing the Effects of Transactions Using T-Accounts Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4] Section Break 12. value: 0.43 points

Solution

Solution:

Cash A/c
Particulars	Debit	Particulars	Credit
To Common stock	$45,000.00	By Equipment	$2,000.00
		By Equipment (Repair)	$2,000.00
		By balance C/F	$41,000.00
Total	$45,000.00		$45,000.00