Analyze the accounting equation effects of the transactions in M2-15 using the format shown in the chapter, and compute total assets, total liabilities, and total stockholders' equity.
Effects Of The Transactions in M2-15
a. The company purchased equipment for $4,000 cash. The equipment is expected to be used for 10 or more years.
b. Joel's business bought $7,000 worth of books from a publisher. The company will pay the publisher within 45-60 days.
c. Joel's friend Sam lent $4,000 to the business. Sam had Joel write a note promising that bookmart.com would repay the $4,000 in four months. Because they are good friends, Sam is not going to charge Joel interest.
d. The company paid $1,500 cash for books purchased on account earlier in the month.
e. Bookmart.com repaid the $4,000 loan established in (c).