Question: The following events occurred for Favata Company a Received 10 000

The following events occurred for Favata Company:
a. Received $ 10,000 cash from owners and issued stock to them.
b. Borrowed $ 7,000 cash from a bank and signed a note due later this year.
c. Bought and received $ 800 of equipment on account.
d. Purchased land for $ 12,000; paid $ 1,000 in cash and signed a long- term note for $11,000.
e. Purchased $ 3,000 of equipment, paid $ 1,000 in cash and charged the rest on account.
For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect (1 for increase and 2 for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction. Use the following headings:

View Solution:

Sale on SolutionInn
  • CreatedNovember 02, 2015
  • Files Included
Post your question