E2-12 Analyzing the Effects of Transactions Using T-Accounts; Preparing and Inte

Question

E2-12 Analyzing the Effects of Transactions Using T-Accounts; Preparing and Interpreting [The following information applies to the questions displayed below Laser Delivery Services, Inc. (LDS) was incorporated January 1. The following transactions pccurred during the year: a. Received $45,000 cash from the company's founders in exchange for common stock. b. Purchased land for $16,500, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $14,000 each; paid $2,000 cash and signed a note due in three years for $26,000 (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 $370,000 cash for a house for his personal use. References E2-12 Analyzing the Effects of Transactions Using T-Accounts Preparing and Interpreting a Balance Sheet [LO 2-2, LO 2-3, LO 2-4] Section Break 12. value: 0.43 points

Explanation / Answer

Solution:

Cash A/c Particulars Debit Particulars Credit To Common stock $45,000.00 By Equipment $2,000.00 By Equipment (Repair) $2,000.00 By balance C/F $41,000.00 Total $45,000.00 $45,000.00

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