Laser Delivery Services, Incorporated (LDS), was incorporated January 1. The following transactions occurred during the year:...

  

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Laser Delivery Services, Incorporated (LDS), was incorporated January 1. The following transactions occurred during the year: a. Received $26,000 cash from the company's founders in exchange for common stock. b. Purchased land for $8,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $8,000 each; paid $1,500 cash and signed a note due in three years for $14,500 (ignore interest). d. Paid $700 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $210,000 cash for a house for his personal use. Required: 1. Analyze each item for its effects on the accounting equation of Laser Delivery Services 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. Cash Assets Equipment Liabilities Notes Accounts Land = Payable Payable (long-term) Stockholders' Equity Common Stock 0 0= 0 0+ 0 + 26,000 Beginning Balance a 0 26,000 b. 8,500= C. (1,500) 16,000 d. (700) = e. = Ending Balance 23,800 16,000 8,500= 8,500+ 14,500+ + + 23,000+ 26,000 Laser Delivery Services, Incorporated (LDS), was incorporated January 1. The following transactions occurred during the year: a. Received $26,000 cash from the company's founders in exchange for common stock. b. Purchased land for $8,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $8,000 each; paid $1,500 cash and signed a note due in three years for $14,500 (ignore interest). d. Paid $700 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $210,000 cash for a house for his personal use. Required: 1. Analyze each item for its effects on the accounting equation of Laser Delivery Services 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. Cash Assets Equipment Liabilities Notes Accounts Land = Payable Payable (long-term) Stockholders' Equity Common Stock 0 0= 0 0+ 0 + 26,000 Beginning Balance a 0 26,000 b. 8,500= C. (1,500) 16,000 d. (700) = e. = Ending Balance 23,800 16,000 8,500= 8,500+ 14,500+ + + 23,000+ 26,000