$4$

E$2-4($Algo$)$ Determining Financial Statement Effects of Several Transactions LO$2-3$

$1\mathrm{.}11$

The following events occurred for Johnson Company:

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Skipped

a$.$ Received investment of cash by organizers and distributed to them $1,120$ shares of $$1$ par value common stock with a market price of $$15$ per share.

b$.$ Leased $$9,000$ of equipment, paying $$1,200$ in cash and signing a long$-$term right$-$of$-$use lease for the rest owed.

c$.$ Borrowed $$7,000$ cash from a bank.

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d$.$ Loaned $$1,300$ to an employee who signed a note due in six months.

e$.$ Purchased $$20,899$ of land; paid $$10,000$ in cash and signed a note for the balance.

Hint

References

Required:

For each of the events $($a$)$ through $($e$),$ perform transaction analysis and indicate the ala ount and amount. Check that the accounting equation remains in balance after each transaction.

Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells blank.

$\backslash$table$[[$Event$,$Assets$],[$a$.,,],[$a$.,,],[$b$.,,],[$b$.,,],[$c$.,,],[$c$.,,],[$d$.,,],[$d$.,,]]$