View the step-by-step solution to:

Question

Fruity Farms was incorporated as a private company on January 1, 2017. The company's accounts included the

following at January 31, 2017:

 

      Accounts Payable$20,000    Land$100,000   Building 50,000    Notes Payable, due 2019 22,000   Bank Overdraft 9,000    Retained Earnings 74,000   Contributed Capital 75,000    Supplies 3,000   Equipment 47,000    


During the month of February, the company had the following activities:

  1. Paid a dividend to shareholders of $15,000.
  2. Repaid $10,000 cash to a local bank.
  3. Issued 500 shares for $50,000 cash.
  4. Purchased equipment for $30,000, paying $3,000 in cash and signing a note due in six months for the balance.
  5. Purchased supplies for $3,000 on account.


Required:

1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. 

Top Answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question