Soar Inc.enters into the following transactions:
-Stockholders contribute $10,000 cash to a company in exchange for common stock.
-The company purchases $5,000 to buy new equipment by paying cash.
-The company pays $3,000 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.
Correct Answer:
Verified
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