20
points
Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash
on hand of $20,000 contributed by Lanni's owners.
Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years
Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software
Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment
in the form of 1,000 shares of Microsoft stock
Lanni sells the shares of stock for $140 per share and uses part of the proceeds to pay off the bank loan
Required:
a-1. Prepare its balance sheet just after it gets the bank loan.
Assots
Liabilities & Shareholders' Equity
Cash
Computers
Total
Bank loan
Shareholders' equity
$
0
Total
$
0