The company entered into the following transactions during July, Year 3. Stockholders contribute $480,000 cash for additional ownership shares and the company borrows $240,000 in cash from a bank to buy new equipment at a later date. No other transactions took place during July, Year 3. Required: Prepare a classified balance sheet for the company at June 30, Year 3. Show the effects of the July transactions on the basic accounting equation. Prepare the journal entries that would be used to record the transactions.

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Effects of July Transactions on Accounting Equation Initial Equation assuming no existing liabilitie... View the full answer