Morgan Inc. entered into the following transactions. a. Sold common stock to investors in exchange for $50,000

Question:

Morgan Inc. entered into the following transactions.
a. Sold to investors in exchange for $50,000 cash
b. Borrowed $15,000 cash from First State Bank
c. Purchased $8,000 of supplies on credit
d. Paid for the purchase in c
Required:
Show the effect of each transaction using the following model.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...