Grizzly Co.enters into the following transactions:
Stockholders contribute $25,000 cash to a company in exchange for common stock.
The company purchases $12,500 of new equipment in exchange for its promise to pay $12,500 at the end of next month.
The company pays $7,500 to suppliers on account.
Required:
Part a.Show the effect of these transactions on the basic accounting equation.
Part b.Prepare the journal entries that would be used to record the transactions.
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Q69: Match
-Equipment
A)Current Assets
B)Tangible Assets
C)Investments
D)Intangibles
E)Other
F)Current Liability
G)Long-Term Liability
H)Capital Stock
I)Retained Earnings
J)Item
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