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The following events occurred for Johnson Company:
a. Received investment of $40,000 cash by organizers and distributed 1,000 shares of $1 par value common stock to them.
b. Purchased $15,000 of equipment, paying $3,000 in cash and signing a note for the rest.
c. Borrowed $10,000 cash from a bank.
d. Loaned $800 to an employee who signed a note.
e. Purchased $13,000 of land; paid $4,000 in cash and signed a mortgage note for the balance.
Required:
For each of the events (a) through (e), perform transaction analysis and indicate the account, amount, and direction of the effect (+ for increase and - for decrease) on the accounting equation. Check that the accounting equation remains in balance after each transaction. Use the followingheadings:
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