E2-10 Analyzing the Effects of Transactions in T-Accounts LO2-4 Precision Builders Construction Company was incorporated by...

90.2K

Verified Solution

Question

Accounting

E2-10 Analyzing the Effects of Transactions in T-Accounts LO2-4Precision Builders Construction Company was incorporated by ChrisStoschek. The following activities occurred during the year:Received from three investors $58,000 cash and land valued at$33,000; each investor was issued 1,000 shares of common stock witha par value of $0.10 per share. Purchased construction equipmentfor use in the business at a cost of $53,000; one-fourth was paidin cash and the company signed a note for the balance (due in sixmonths). Lent $3,000 to one of the investors who signed a note duein six months. Chris Stoschek purchased a truck for personal use;paid $6,900 down and signed a one-year note for $31,500. Paid$21,500 on the note for the construction equipment in (b) (ignoreinterest). Required: 1. Create T-accounts for the followingaccounts: Cash, Notes Receivable, Equipment, Land, Notes Payable,Common Stock, and Additional Paid-in Capital. Beginning balancesare $0. For each of the preceding transactions, record the effectsof the transaction in the appropriate T-accounts. Include goodreferencing for each T-account.

Answer & Explanation Solved by verified expert

3.6 Ratings (330 Votes)

PRECISION BUILDERS CONSTRUCTION COMPANY Cash Account Particulars Debit Particulars Credit To Investorspaid in Capital 58000 By Equipment 13250 58000 in total from 3 partners By Investorspaid in capital 3000 By Notes Payable 21500 By Balance Cd 20250 58000 58000 Notes Receivable Account Particulars See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

E2-10 Analyzing the Effects of Transactions in T-Accounts LO2-4Precision Builders Construction Company was incorporated by ChrisStoschek. The following activities occurred during the year:Received from three investors $58,000 cash and land valued at$33,000; each investor was issued 1,000 shares of common stock witha par value of $0.10 per share. Purchased construction equipmentfor use in the business at a cost of $53,000; one-fourth was paidin cash and the company signed a note for the balance (due in sixmonths). Lent $3,000 to one of the investors who signed a note duein six months. Chris Stoschek purchased a truck for personal use;paid $6,900 down and signed a one-year note for $31,500. Paid$21,500 on the note for the construction equipment in (b) (ignoreinterest). Required: 1. Create T-accounts for the followingaccounts: Cash, Notes Receivable, Equipment, Land, Notes Payable,Common Stock, and Additional Paid-in Capital. Beginning balancesare $0. For each of the preceding transactions, record the effectsof the transaction in the appropriate T-accounts. Include goodreferencing for each T-account.