2 questions from chapter 2

1. Required information

E2-12 Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4] Laser Delivery Services, Inc. (LDS), was incorporated January 1. The following transactions occurred during the year:

1. Received $39,000 cash from the company's founders in exchange for common stock.
2. Purchased land for $15,000, signing a two-year note (ignore interest).

question 2

1. Bought two used delivery trucks at the start of the year at a cost of $11,000 each; paid $4,500 cash and signed a note due in three years for $17,500 (ignore interest).
2. Paid $2,000 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.
3. Stockholder Jonah Lee paid $340,000 cash for a house for his personal use.

Chapter 2. Homework Saved Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate com : 38 Part 1 of 5 Required information E2-12 Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet (LO 2-2, LO 2-3, LO 2-4) [The following information applies to the questions displayed below.) 0.59 points Laser Delivery Services, Inc. (LDS), was incorporated January 1. The following transactions occurred during the year: a. Received $39,000 cash from the company's founders in exchange for common stock. b. Purchased land for $15,000, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $11,000 each; paid $4,500 cash and signed a note due in three years for $17,500 (ignore interest). d. Paid $2,000 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $340,000 cash for a house for his personal use. E2-12 Part 1 Required: 1. Analyze each item for its effects on the accounting equation of LDS for the year ended December 31. (Enter any decreases to account balances with a minus sign.) TIP: Transaction (a) is presented below as an example. TIP: The new motor in transaction (d) is treated as an increase to the cost of the truck. Answer is not complete. Assets Liabilities + Stockholders Equity Cash Equipment Land Accounts Payable Notes Payable (long term) 0 Common Stock Beg 0 0 0 0 a. b. 0 39.000 0 (4,500) (2.000) 0 0 22,000 39,000 0 0 c. 15,000 00 0 0 15,000 15,000 17,500 0 d. 0 0 0 0 0 0 e 0 0 0 39,000 End 32,500 32,500 Chapter 2. Homework Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 41 Part 4 of 5 Required Information E2-12 Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4] {The following information applies to the questions displayed below.) 0.59 points Laser Delivery Services, Inc. (LDS), was incorporated January 1. The following transactions occurred during the year: a. Received $39,000 cash from the company's founders in exchange for common stock. b. Purchased land for $15,000, signing a two-year note (ignore interest). cBought two used delivery trucks at the start of the year at a cost of $11,000 each; paid $4,500 cash and signed a note due in three years for $17.500 (ignore interest). d. Paid $2,000 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $340,000 cash for a house for his personal use. E2-12 Part 4 4. Prepare a classified balance sheet for LDS at December 31. Include Retained Earnings on the balance sheet even though the account has a zero balance. Answer is complete but not entirely correct. LASER DELIVERY SERVICES, INC Balance Sheet At December 31 Assets Liabilities $ 39,000 Notes Payable long-term) $ 39,000 Current Assets Cash Accounts Receivable Total Current Assets Land X 39.000 39,000 15.000 24,000 Total Liabilities Stockholders' Equity Common Stock Ratained Earnings Equipment 39,000 0 Total Assets $ 78,000 Total Liabilities and Stockholders' Equity 78,000