Following are the transactions of JonesSpa Corporation, for the month of January.
a. Borrowed $27,500 from a local bank; the loan is due in 9 months.
b. Lent $7,700 to an affiliate; accepted a note due in one year.
c. Sold to investors 100 additional shares of stock with a par value of $0.10 per share and a market price of $30 per share; received cash.
d. Purchased $16,000 of equipment, paying $6,000 cash and signing a note for the rest due in one year.
e. Declared $4,900 in cash dividends to stockholders, to be paid in February.
For each of the above transactions, indicate the accounts and amounts. A sample is provided.
Note: Enter decreases to an element of the balance sheet with a minus sign.
Assets
a. Cash
b. Notes receivable
b. Cash
Liabilities
+
27,500 Notes payable
27,500
7,600
+
-7,600 =
+
1,000
Stockholders' Equity
