[The following information applies to the questions displayed below.] Laser Deli

Question

[The following information applies to the questions displayed below.]

Laser Delivery Services, Inc. (LDS) was incorporated January 1. The following transactions occurred during the year:

Received $37,000 cash from the company's founders in exchange for common stock.

Purchased land for $14,000, signing a two-year note (ignore interest).

Bought two used delivery trucks at the start of the year at a cost of $9,000 each; paid $3,500 cash and signed a note due in three years for $14,500 (ignore interest).

Paid $1,800 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.

Laser Delivery Services, Inc. (LDS) was incorporated January 1. The following transactions occurred during the year:

value Requir 0.31 points 3. Show the effects of the journal entries by account, using the T-account. Cash Equipment Beg. Bal Beg. Bal End. Bal. End. Ba. Land Notes Payable Beg. Bal. Beg. Bal End. Bal End. Bal Common Stock Beg. Bal. End. Bal.

Explanation / Answer

3.

4.

Cash Equipment Ref Debit Credit Ref Ref Debit Credit Ref Beg.Bal. 0 3500 c Beg.Bal. 0 a 37000 1800 d c 18000 37000 5300 d 1800 Beg.Bal. 31700 19800 0 Beg.Bal. 19800 Land Note payable Ref Debit Credit Ref Ref Debit Credit Ref Beg.Bal. 0 0 Beg.Bal. b 14000 14000 b 14000 0 14500 c Beg.Bal. 14000 0 28500 28500 Beg.Bal. Common stock Ref Debit Credit Ref 0 Beg.Bal. 37000 a 0 37000 37000 Beg.Bal.

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