Answer:
Cash 39.000 debit
Common Stock 1,190 credit
Additional Paid-in 37,810 credit
Equipment 7,100 debit
Cash 1,300 credit
Note payable 5,800 credit
Cash 15,000 debit
Note payable 15,000 credit
Explanation:
We debit the cash received and credit the face value of the common stock
the difference is label as additional paid-in common stock which, is also credited.
as the equipment is worth 7,100 and we paid 1,300 cash the differnece: 7,100 - 1,300 = 5,800 is the principal of the note signed
As the equipment which enters the firm is an asset it wil lbe debited.
the cash is being used thus, credited and the note is a liability hence credit as well
the third event consist of a inflow of cash thus debit and taking a liability therefore, credit.
