Questions 1216 of 22 E212 Analyzing the Effects of Tran

Questions 12-16 (of 22) ? | | > | 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 occurred 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

Solution

Cash Equipment Beg. Bal.                   -        2,000.00 c Beg. Bal.                   -   a.    45,000.00      2,000.00 d. c.    28,000.00 d.      2,000.00 End. Bal.    41,000.00 End. Bal.    30,000.00 Land Notes Payable Beg. Bal.                   -   Beg. Bal.                   -   b.    16,500.00    16,500.00 b.    26,000.00 c. End. Bal.    16,500.00 End. Bal.    42,500.00 Common Stock Beg. Bal.                   -      45,000.00 a. End. Bal.    45,000.00