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Determining Financial Statement Effects of Several Transactions

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Information for TAB M2-9, M2-10 and M2-11 is below:

a. Borrowed $3,940 from a local bank on a note due in six months.
b. Received $4,630 cash from investors and issued stock to them.
c. Purchased $1000 in equipment, paying $200 cash and promising the rest on a note due in one year.
d. Paid $300 cash for supplies.
e. Bought and received $700 of supplies on account.

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Solution Summary

The problem set deals with questions under accounting: transaction analysis through assets = liabilities + equity.

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