Cayuga Lodge began operations with the following transactions: a. Issued 10,000 shares of common stock to...

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Cayuga Lodge began operations with the following transactions: a. Issued 10,000 shares of common stock to investors for $200,000. b. Purchased a 15-room hotel on Cayuga Lake ($180,000 for the Land and $200,000 for building). Paid $80,000 cash and signed a mortgage for the balance. c. Purchased food and beverage inventory on account for $35,000. d. Purchased furniture and fixtures for $60,000. e. Paid for the inventory purchased in c. above. Required: For each transaction, indicate the accounts involved, the type of account, and whether the accounts are being increased or decreased ( or ). Letter a. is completed as an example. a. Common stock OE 1, Cash A Cayuga Lodge began operations with the following transactions: a. Issued 10,000 shares of common stock to investors for $200,000. b. Purchased a 15-room hotel on Cayuga Lake ($180,000 for the Land and $200,000 for building). Paid $80,000 cash and signed a mortgage for the balance. c. Purchased food and beverage inventory on account for $35,000. d. Purchased furniture and fixtures for $60,000. e. Paid for the inventory purchased in c. above. Required: For each transaction, indicate the accounts involved, the type of account, and whether the accounts are being increased or decreased ( or ). Letter a. is completed as an example. a. Common stock OE 1, Cash A

Answer rating: 100% (QA)

Answer Purchased a 15room hotel on Cayuga Lake Accounts involved Land Asset Building Asset Cash Asse... View the full answer