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E2-10 (Algo) Analyzing the Effects of Transactions in T-Accounts LO2-4

Accurate Builders construction company was incorporated by John Davis. Assume the following activities occurred during the year:

1. Received from three investors $58,000 cash and land valued at $33,000; each investor was issued 1,000 shares of common stock with a par value of $0.10 per share.
2. Purchased construction equipment for use in the business at a cost of $53,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months).
3. Lent $3,000 to one of the investors, who signed a note due in six months.
4. John Davis purchased a truck for personal use; paid $6,900 down and signed a one-year note for $31,500.
5. Paid $21,500 on the note for the construction equipment in (b) (ignore interest).

Required:

1. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts.

2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:

4. Compute the market value per share of the stock.

For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts. Cash Notes Receivable 0 0 Beg. Bal. Beg. Bal. (a) 58,000 End. Bal. 58,000 End. Bal. Land Equipment 0 Beg. Bal. Beg. Bal. 0 End. Bal. End. Bal. Notes Payable Common Stock Beg. Bal. 0 Beg. Bal. 0 End. Bal. End. Bal. Additional Paid-in Capital Beg. Bal. 0 End. Bal. Required: 1. For each of the preceding transactions, record the effects of the transaction in the appropriate 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: 4. Compute the market value per share of the stock. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets = Liabilities + Stockholders' Equity Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Compute the market value per share of the stock. (Round your answer to 2 decimal places.) Market value per share per share

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