Answer Happy

The following events occurred for Mitka Ltd.: a. Received investment of $32,800 cash by organizers. b. Purchased land for $19,600; paid $6,800 in cash and signed a mortgage note with a local bank for the balance (due in five years). c. Borrowed cash from a bank and signed a note for $11,800. d. Lent $1,100 to an employee who signed a note due in three months. e. Paid the bank the amount borrowed in (c). f. Purchased $9,600 of equipment, paying $4,800 in cash and signing a note due to the manufacturer. Required: For each of the events (a) through (f), perform transaction analysis and indicate the account, amount, and direction of the effects on the accounting equation. Check that the accounting equation remains in balance after each transaction. (Enter decreases to account balances with a minus sign.) Event a. b. C. d. e. f. Assets = Liabilities + Shareholders' Equity