Reference no: EM132470755

Problem - Following are the transactions of Dennen, Inc., for the month of January 2015.

a. Borrowed $30,000 from a local bank.

b. Lent $10,000 to an affiliate; accepted a note due in one year.

c. Sold 100 additional shares of stock with a par value of $0.10 per share to investors for $500 cash.

d. Purchased $15,000 of equipment, paying $5,000 cash and signing a note for the rest due in one year.

e. Declared and paid $2,000 in dividends to stockholders.

Required - For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts and determine ending account balances. Beginning balances are provided.