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Laser Delivery Services, Incorporated (LDS), was incorporated January 1. The following transactions occurred during the year:

Received $50,000 cash from the company's founders in exchange for common stock.

Purchased land for $17,000, signing a two-year note (ignore interest).

Bought two used delivery trucks at the start of the year at a cost of $15,000 each; paid $2,500 cash and signed a note due in three years for $27,500 (ignore interest).

Paid $2,500 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks.

Stockholder Jonah Lee paid $380,000 cash for a house for his personal use.

Required:

Analyze each item for its effects on the accounting equation of Laser Delivery Services for the year ended December 31.

TIP: Transaction (a) is presented below as an example.

TIP: The new motor in transaction (d) is treated as an increase to the cost of the truck.

Laser Delivery Services, Incorporated (LDS), was incorporated January 1. The following transactions occurred during the year: a. Received $50,000 cash from the company's founders in exchange for common stock b. Purchased land for $17,000, signing a two-year note (ignore interest). c. Bought two used delivery trucks at the start of the year at a cost of $15,000 each; paid $2,500 cash and signed a note due in three years for $27,500 (ignore interest), d. Pald $2,500 cash to a truck repair shop for a new motor, which increased the cost of one of the trucks. e. Stockholder Jonah Lee paid $380,000 cash for a house for his personal use. 1. Analyze each item for its effects on the accounting equation of Laser Delivery Services for the year ended December 31. (Enter any decreases to account balances with a minus sign.) TIP: Transaction (a) is presented below as an example. TIP: The new motor in transaction (d) is treated as an increase to the cost of the truck. Assets Stockholders Equity Cash Equipment Land Liabilities Accounts Notos Payable Payable (long-term 0 01 + Common Stock Beginning Balance 0 0= 0 0 50,000 a + 50,000 b. d e. Ending Balance

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