The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,160 shares of $1 par value common stock with a market price of $15 per share. b. Leased $7,300 of equipment, paying $1,700 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $9,000 cash from a bank. d. Loaned $800 to an employee who signed a note due in six months. e. Purchased $19,383 of land; paid $9,000 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. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells blank.

The following events occurred for Johnson Company: a. Received investment of cash by organizers and distributed to them 1,160 shares of $1 par value common stock with a market price of $15 per share. b. Leased $7,300 of equipment, paying $1,700 in cash and signing a long-term right-of-use lease for the rest owed. c. Borrowed $9,000 cash from a bank. d. Loaned $800 to an employee who signed a note due in six months. e. Purchased $19,383 of land; paid $9,000 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. Note: Enter decreases to an element of the balance sheet with a minus sign. If no impact on accounting equation leave cells blank.

Name: 7 The following events occurred for Johnson Company:a. Received invest
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Description: 7 The following events occurred for Johnson Company:a. Received investment of cash by organizers and distributed to them 1,160 shares of $1 par value common stock with a marketprice of $15 per share.b. Leased $7,300 of equipment, paying $1,700 in cas

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Assume the following: Lomo Engineering Company had the following transactions: Jan-01 Issued capital stock for $965,000. Jan-01 Purchased a Packaging Equipment for $20,000. Jan-01 Purchased an Insurance Policy (1 year) for $30,000. Jan-03 Purchased a Machine, paying $15,000 in cash and issuing a note of $20,000. Jan-05 Purchased $28,000 of inventory on account. Jan-07 Sold inventory costing $6,000 for $50,000 on account. Jan-11 Paid $2,000 for inventory purchased on account (from Jan-05). Jan-15 Collect $12,550 of accounts receivable from customers (from Jan-07). Jan-17 Paid utility bills totaling $1,500. Jan-23 Paid wages for $13,000. Jan-25 Collect $8,000 in bank interest. Jan-30 Paid $12,590 due to income taxes. Chart of Accounts for Lomo Engineering Company Assets: 101 Cash 105 Accounts Receivable 110 Note Receivable 115 Inventory 120 Prepaid Insurance…
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