Rawlco Communications Operates 15 Radio Stations The Following Events Occurred During

Question

Rawlco Communications operates 15 radio stations. The following events occurred during

September.

  1. Placed an order for office supplies costing $1,800. Supplier intends to deliver later in the month.
  2. Purchased equipment that cost $23,000; paid $6,000 cash and signed a promissory note to pay $17,000 in one month.
  3. Negotiated and signed a one-year bank loan, and then deposited $5,000 cash in the company’s checking account.
  4. Hired a new finance manager on the last day of the month.
  5. Received an investment of $11,000 cash from the company’s owners in exchange for issuing common shares.
  6. Supplies [ordered in (a)] were received, along with a bill for $1,800.

Indicate the specific account, amount, and direction of effects for each transaction on the radio station’s accounting equation. If an event is not considered a transaction, leave the account, amount and direction of effects blank. (Enter any decreases to account balances with a minus sign.)

A
B
L
F
Gi
H
Assets
Liabilities
+
Stockholders’s Equity
1
2
equipment
+23000
payable note
+17000
cash
6000
3
cash
-5000
bank loan
-5000
4
cash
+11000
6
capital
supplies
11000
+1800
Account payable…Business