Extracted text: Adam and David are two entrepreneurs who agreed to form a corporation ("A&D") to operate a car repair shop in the Boston region. They began business on January 1, 2021 with the following transactions occurred during the month of January. Prepare journal entries, T-accounts, and a balance sheet as of January 31, 2021 for A&D. Organize your T-accounts by following the order of assets, liabilities, equity, revenues, and expenses. Each T-account should start with a beginning balance and end with an ending balance for each reporting period. (Note: for T-accounts, you may use a table like the one below. Create a table using the "Insert" or "Table" function in the ribbon. Cells can be merged from the "Table" function in the ribbon. You can access more format functions when you click the three dots on the right side above the text entry box.) Name of account 1 Name of account 2 Name of account 3 1. (a) Adam contributed $100,000 to A&D in exchange for 1,000 shares of A&D common stock. (b) David transferred to A&D title to a shop space, valued at $100,000, in exchange for 1,000 shares of A&D common stock. 2. A&D bought tools and supplies for $9,000 from X Corp., charging the purchase to its account. 3. A&D ordered $2,000 in a used equipment from a supplier (Y Corp.). The terms of the order permitted A&D to cancel the order without any obligation whatsoever up until the time of delivery. 4. A&D borrowed $8,000 from a local bank, a one-year loan with 10% annual interest rate. The loan agreement specifies that interest and principle will be paid on the loan's maturity date.
Extracted text: 5. Y Corp. delivered the equipment A&D ordered. A&D paid Y Corp. for the equipment when it was delivered. 6. A&D paid X Corp. $3,000 on its account. 7. A&D realized that it ordered one repair tool too many from X Corp.. It sold the extra tool to a local garage (Z LLC) for $800, which is what A&D paid for it. Z LLC gave A&D a note, payable by Z LLC to A&D in 30 days.