The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed...

  

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The following events occurred for Johnson Company: 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 $20 per share. b. Leased $7,100 of equipment, paying $2,000 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $8,000 cash from a bank. d. Loaned $1,300 to an employee who signed a note due in six months. e. Purchased $20,886 of land; paid $4,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction. The following events occurred for Johnson Company: 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 $20 per share. b. Leased $7,100 of equipment, paying $2,000 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $8,000 cash from a bank. d. Loaned $1,300 to an employee who signed a note due in six months. e. Purchased $20,886 of land; paid $4,000 in cash and signed a note for the balance. Required: For each of the events (a) through (e), perform transaction analysis and indicate the account and amount. Check that the accounting equation remains in balance after each transaction.

Answer rating: 100% (QA)

Lets analyze each of the events a through e and identify the accounts and amounts involved Well also check that the accounting equation remains in bal... View the full answer