during February while the company was being organized are listed as follows. 9 5

Question

during February while the company was being organized are listed as follows. 9 5 5 5 2 9 1 Feb.16 Computer equipment was purchased from PCWorld for $12,400 cash. 2 1 the time of purchase, and an agreement was made to pay the remaining balance in two equal instal1ments due March 1 and April 1. Hi-Way Furnishings did not require that Heartland sign a promissory note. 3 Feb.22 Office supplies were purchased from Office World for $445 cash. cost only $350, but Heartland was charged $385. PCWorld promised to refund the difference within seven days. 9 2 Feb.28 Received $35 from PCWorld in full settlement of the account receivable created on February 23.

Explanation / Answer

Date Assets = Liabilities + Owners’ Equity Feb. 1 $     700,000 Cash $     700,000 Capital stock Feb. 10 $       92,500 Land $     222,000 Notes Payable $     185,000 Offce Building $      (55,500) Cash Feb. 16 $       12,400 Computer Systems $      (12,400) Cash Feb. 18 $         9,050 Office Furnishings $         8,145 Accounts Payable $           (905) Cash Feb. 22 $            445 Office Supplies $           (445) Cash Feb. 23 $              35 Accounts Receivable $             (35) Computer Systems Feb. 27 $   (4,072.50) Cash $   (4,072.50) Accounts Payable Feb. 28 $              35 Cash $             (35) Accounts Receivable

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