46 Evaluate the effects of each transaction by constructime

4.6 Evaluate the effects of each transaction by constructime a and a liabilities + net worth side Transaction (a) Eastwood Construction is organized with a capital stock osu (b) Bought from Culpepper Co. on credit $100.000 of (c) Borrowed $80,000 cash from First National Bank (d) Paid Culpepper $30,000 on account. (e) Returned $10,000 of defective material to Cuipepper (f) Loaned $50,000 to Robert Gondring (g Paid $20,000 cash for building site (h) Erected a building at a cost of $120,000 cash ) Borrowed $70,000 from Friendly Insurance, giving a morigage iorouliaenal (Hints: Find the T-account balances for these titles Cast Accoums Recei & Building, Accounts Payable, Notes Payahle, Morigage and Capia Soa the balance sheet.)

Solution

Workings

Eastwood Manufacturing
Balance Sheet
Assets		Liabilities and NetWorth
Cash	180000	Account Payable	60000
Inventory	90000	Notes Payable	80000
Building	140000	Mortage	70000
Loan to Rober Gondring	50000	NetWorth
		Capital Stock	250000
Total	460000	Total	460000