Business, 29.01.2021 16:40 marusiaturanova2004

Analyzing the Effects of Transactions Using T-Accounts Laser Delivery Services, Inc. (LDS), was incorporated January 1. The following transactions occurred during the year:
a. Received $40,000 cash from the company's founders in exchange for common stock
b. Purchased land for $12,000, signing a two-year note (ignore interest).
c. Bought two used delivery trucks at the start of the year at a cost of $10,000 each; paid $2,000 cash and signed a note due in three years for $18,000 (ignore interest),
d. Paid $2.000 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.
e. Stockholder Jonah Lee paid $300,000 cash for a house for his personal use.
Required:
Analyze each item for its effects on the accounting equation of LDS for the year ended December 31.
Prepare a classified balance sheet for LDC at the end of 2010

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Answer from: Mw3spartan17

Laser Delivery Services, Inc. (LDS)

Analyzing the Effects of Transactions Using T-Accounts:

Cash

Date Accounts Titles Debit Credit

a. Common Stock $40,000

c. Delivery Truck $2,000

d. Delivery Truck 2,000

Balance 36,000

Common Stock

Date Accounts Titles Debit Credit

a. Cash $40,000

Land

Date Accounts Titles Debit Credit

b. Note Payable $12,000

Note Payable

Date Accounts Titles Debit Credit

b. Land $12,000

c. Delivery Truck 18,000

Balance $30,000

Delivery Trucks

Date Accounts Titles Debit Credit

c. Cash $2,000

Note Payable 18,000

d. Cash 2,000

Balance $22,000

2. Classified Balance Sheet as of December 31, 2010:

Assets:

Cash $36,000

Land 12,000

Delivery trucks 22,000 $34,000

Total assets $70,000

Liabilities + Equity:

Notes Payable 30,000

Common Stock $40,000

Total liabilities + Equity $70,000

Explanation:

a) Trial Balance

Cash $36,000

Land 12,000

Delivery trucks 22,000

Common Stock $40,000

Notes Payable 30,000

Totals $70,000 $70,000

b) Business transactions affect the accounting equation (assets = liabilities + equity) by increasing or decreasing the two sides equally. This means that the accounting equation is always in balance before and after every transaction.

Answer from: Quest

you don't if you paid you paid. it's like if i bought a computer and used it then i say idon't want it anymore so im gonna return it. you can't. unlkess you have your reciept

Answer from: Quest

answer: b 56, 250

explanation:

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Analyzing the Effects of Transactions Using T-Accounts Laser Delivery Services, Inc. (LDS), was inc...

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