The analysis of the transaction in which Kranning Leasing engaged during the first month of operations follows,
Question:
The analysis of the transaction in which Kranning Leasing engaged during the first month of operations follows, The company buy equipment that it lease out to earn revenue. The owners of the business made only one investment to start the business and no withdrawal
Cash + A/c Receivable + lease Equipment = A/c Payable + Partners Capital
A. +50,000 +50,000
B. +100,000 + 100,000
C. -750 +750
D. +500 +500
E. -1000 -1,000
F. +3,600 +3,600
G. +150 -150
H. -10,000 -10,000
Required
1. What type of business organization is Kranning Leasing? How can you tell?
2. Describe each transaction
3. If these transactions fully describe the operation of Kranning Leasing during the month, what was the amount of net income or net loss?
