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Impact of Transactions on T-Accounts

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During the year 2015, the company had the following summarized activities:

a. Purchased short-term investments for $10,000 cash.
b. Lent $5,000 to a supplier who signed a two-year note.
c. Purchased equipment that cost $18,000; paid $5,000 cash and signed a one-year note for the balance.
d. Hired a new president at the end of the year. The contract was for $85,000 per year plus options to purchase company stock at a set price based on company performance.
e. Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash.
f. Borrowed $9,000 cash from a local bank, payable in three months.
g. Purchased a patent (an intangible asset) for $3,000 cash.
h. Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance.
i. Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.

Required:
1. & 2. Record each necessary entry for the events in 2015 in T-accounts (including referencing) and determine the ending balances. The balances at the end of
2014 have been entered as beginning balances for 2015.

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Determines the impact of transactions on T-Accounts, given a company's yearly activities. Attached in Excel.

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See Also This Related BrainMass Solution

Financial Journal Entries and T-Accounts.

Below is the problem, I have also attached documents that shows what I have already done in trying to solve the problem. Any assistance in this would be greatly appreciated:

3-1. The Company borrowed $125,000 in cash from Far West Bank.
a. List the accounts impacted by the transaction.
b. For each account, indicate whether the transaction increased or decreased the account.
c. For each account, indicate how much the transaction increased or decreased the account.
d. Compute the impact of the transaction on total assets, total liabilities, and total owners' equity.

3-2. The Company used $45,000 in cash to purchase land on the west side of Hatu Lake.
a. List the accounts impacted by the transaction.
b. For each account, indicate whether the transaction increased or decreased the account.
c. For each account, indicate how much the transaction increased or decreased the account.
d. Compute the impact of the transaction on total assets, total liabilities, and total owners' equity.

3-11. Refer to Practice 3-1. Make the journal entry necessary to record the transaction.

3-12. Refer to Practice 3-2. Make the journal entry necessary to record the transaction.

3-16. Refer to the journal entries made in Practice 3-11 and 3-12. Construct a T-account representing each account impacted by those two transactions. Post all of the journal entries to these T-accounts. Compute the ending balance in each account. Assume that the beginning balance in each T-account is zero.

3-19. Refer to the T-account constructed in Practice 3-16. Using the ending balances in that T-account, construct a trial balance.

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