Answer:
1. Dr Cash$30,000
Dr Equipment (Long-term asset) $77,000
Cr Share Capital (Owner’s Equity) $92,000
Cr Bank Loan (Liability) $15,000
2.Dr Cash $37,000
Cr Share Capital (Owner’s Equity) $37,000
Explanation:
1. Preparation for the journal entries to record Moss’s investment
Dr Cash$30,000
Dr Equipment (Long-term asset) $77,000
Cr Share Capital (Owner’s Equity) $92,000
Cr Bank Loan (Liability) $15,000
( Being to record initial capital investment of Moss’s )
2. Preparation for the journal entries to record Barber’s investment
Dr Cash $37,000
Cr Share Capital (Owner’s Equity) $37,000
( Being to record initial capital investment of Barber's )
