The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,120 shares of $1 par value common stock with a market price of $20 per share. b. Leased $7,100 of equipment, paying $2,000 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $8,000 cash from a bank. d. Loaned $1,300 to an employee who signed a note due in six months. e. Purchased $20,886 of land; paid $4,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,120 shares of $1 par value common stock with a market price of $20 per share. b. Leased $7,100 of equipment, paying $2,000 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $8,000 cash from a bank. d. Loaned $1,300 to an employee who signed a note due in six months. e. Purchased $20,886 of land; paid $4,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction.
Expert Answer:
Answer rating: 100% (QA)
Lets analyze each of the events a through e and identify the accounts and amounts involved Well also check that the accounting equation remains in bal... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
Charlie and Sophie are planning a climb. They select a simple route and begin to plan their expedition. 1. A pitch is a section of a climbing route between two anchor points. Charlie and Sophie have...
-
Received investment of cash by organizers and distributed to them 1010 shares of 1 par value common stock with a market price of 20 per share Purchased 8300 of equipment paying 1700 in cash and owing...
-
Kelsey Baker founded GolfDcals.com at the beginning of February. GolfDeals.com sells new and used golf equipment online. The following events occurred in February. a. Borrowed $30,000 cash from a...
-
Classify each protein example according to its highest level of protein structure. Primary structure the amino acid sequence of myoglobin Secondary structure a single helical chain of collagen Answer...
-
A videotape cassette contains two spools, each of radius rs, on which the tape is wound. As the tape unwinds from the first spool, it winds around the second spool. The tape moves at constant linear...
-
What are some differences between a unit investment trust and a closed-end fund?
-
You sell a brand of thermostat that has a life expectancy that is normally distributed, with a mean life of 8.5 years and a standard deviation of 0.75 years. You want to give a guarantee for free...
-
Benjamin, Inc., operates an export/import business. The company has considerable dealings with companies in the country of Camerrand. The denomination of all transactions with these companies is...
-
1.3. Write a simple calculator program in Java to perform addition (+), subtraction (-), multiplication (*) or division (\). Consider the following: (50%) a. The program should read three values: the...
-
Transaction Entries Final Clean, a firm providing house-cleaning services, began business on April 1. The following accounts in its general ledger are needed to record the transactions for April:...
-
Jeff Bezos, after stepping down from Amazon, forms a new corporation by contributing land with a basis of $150,000 and a fair market value of $2,000,000. The land has an outstanding mortgage loan of...
-
Company is growing rapidly and currently retains all of its earnings (i.e., no dividends). If is expected that Company will begin paying a $1.00 dividend 3 years from today. The dividend will grow by...
-
Blaze is a solvent taxpayer who recently lost his job. Blaze has debts from numerous creditors, including $500 from Visa, $1,000 from Master Card, and $800 from Wells. After not paying his bills for...
-
Elucidate the following terms using your own words with an example: 1. Local currency 2. Digital currency 3. The real money units 4. Trade reference currency
-
The S parameters and the noise parameters of a transistor at 1 GHz are the sources and load impedance is 50 S2, and Vs = 10/30 V $120.05/16 S11=0.6/-170 Fmin = 2.5 dB, I'opt = 0.52145, R = 59 a) Is...
-
XYZ Ltd. Is considering the proposal of buying one of the two machines to manufactures a new product. Each of these machines requires an investment of Rs. 50,000 and is expected to provide benefits...
-
Open Outcry Corp. has declared a regular quarterly dividend of $1.35 per share. The current share price is $15.00 per share. Regular dividends are taxed at 15%, which will be withheld on the payment...
-
For liquid water the isothermal compressibility is given by; where r and b are functions of temperature only. If 1 kg of water is compressed isothermally and reversibly from I to 500 bar at 60(C. how...
-
Earnings management entails managers using judgment and reporting estimates in such a way as to alter reported earnings to their favor. a. Discuss the three factors that must be estimated in...
-
Assume that a start-up manufacturing company raises capital through a series of equity issues. a. Using the financial statement template below, summarize the financial statement effects of the...
-
Morrissey Tool Company manufactures machine tools for other manufacturing firms. The firm is wholly owned by Kelsey Morrissey. The firms accountant developed the following long-term forecasts of net...
-
The position of a particle undergoing simple harmonic motion is given by \(x(t)=20 \cos (8 \pi t)\), where \(x\) is in millimeters and \(t\) is in seconds. For this motion, what are the (a)...
-
Fill in the blanks to make the following statements correct. a. It is difficult to compare two or more data series when absolute numbers and different units are used. For that reason we construct...
-
Fill in the blanks to make the following statements correct. a. On a graph with Y on the vertical axis and X on the horizontal axis, the slope of a straight line is calculated as ___________. b. In...
Study smarter with the SolutionInn App