n.com THE ACCOUNTING EQUATION Saved E2-4 Determining Financial Statement Effects of several Transactions (LO 2-1, LO 2-2) The following events occurred for Favata Company a. Received $19,500 cash from owners and issued stock to them. b. Borrowed $16,500 cash from a bank and signed a note due later this year. c. Bought and received $1,750 of equipment on account. d. Purchased land for $31,000; paid $2,900 in cash and signed a long-term note for $28,100. e Purchased $12.500 of equipment; paid $2,900 in cash and charged the rest on account. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account, amount and direction accounting equation (Enter any decreases to account balances with a minus sign.) Assets Event a Cash b Cash Equipment d Land 19.500 16.500 Liabilities Notes Payable (short-term) Accounts Payable Land 16,500 7.750 1.750 31.000 Saved Help Save & Exit Subm Check my work UICIOCU DIJUU UICY CHIL, POIU 94,DU HILO LICU UICICLVII OLLULIT. equired: or each of the events (a) through (e) perform transaction analysis and indicate the account, amount, and direction of the effect on the ccounting equation. (Enter any decreases to account balances with a minus sign.) Assets Stockholders' Equity Event a Cash Common Stock Liabilities Notes Payable (short-term) Accounts Payable Land 16,500 1.750 b 19,500 16,500 1.750 31,000 Cash Equipment Land C. d e Prey 1 of 3 Iii Next > 102 9/97 o i search