Required information Rawlco Communications operates 10 radio stations. The follo

Question

Required information Rawlco Communications operates 10 radio stations. The following events occurred during September a. Placed an order for office supplies costing $2,700. Supplier intends to deliver later in the month. b. Purchased equipment that cost $32,000; paid $18,000 cash and signed a promissory note to pay $14,000 in one month. C. Negotiated and signed a one-year bank loan, and then deposited $7000 cash in the company's checking account. d. Hired a new finance manager on the last day of the month. e. Received an investment of $12,000 cash from the company's owners in exchange for issuing common shares f Supplies [ordered in (a)] were received, along with a bill for $2,700 equired 1. Indicate the specific account, amount, and direction of effects for each transaction on the radio station's accounting equation. If an event is not considered a transaction, leave the account, amount and direction of effects blank. (Enter any decreases to account balances with a minus sign.) Answer is not complete Assets Liabilities Stockholders' Equity (18,000) 32,000 b. Cash Notes Payable (short-term) 14,000 Equipment C. Cash 12,000 2,700 28,700 e. Cash Common Stock 2,700 16,700 f. Supplies Accounts Payable Totals

Explanation / Answer

Assets Liabilities Stockholders' equity a b Cash -18000 Notes payable (Short-term) 14000 Equipment 32000 c Cash 7000 Notes payable (Short-term) 7000 d e Cash 12000 Common Stock 12000 f Supplies 2700 Accounts Payable 2700 Totals 35700 23700 12000

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