-Chip 2 Homework × The following events occurred for Favata Company a Received $

Question

-Chip 2 Homework × The following events occurred for Favata Company a Received $16 000 cash from owners and Issued stock to them c Bought and received $1,400 af equipment on account d Purchased land Nor $24 000, paid $2 200 in cash and signed a long 1erm note for $21,800 b Borrowed $13 3000 cash from a bank and signed a note due later this year e Parchased $9,000 of equipment paid $2 200 in cash and charged the rest on account Required For each of the events (a) theough (e),perfom transaction analysis and indicate the account, amount, and f the efflect ( for increase and for decrease) on the accounting equation (Enter any decreases to account balances with a minus sig HintsReferences ook& Resources

Explanation / Answer

Assets                                                                 = Liabilities                                   + Stockholder's equity a. Cash increase 16000 Common Stock Increase 16000 b. Cash increase 13000 Notes Payable Increase 13000 c. Equipment Increase 1400 Accounts payable Increase 1400 d. Land Increase 24000 Long term Note payable Increase 21800 Cash Decrease -2200 e. Equipment Increase 9000 Accounts Payable Increase 6,800 Cash Decrease -2200

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