Question

Accurate Builders construction company was incorporated by John Davis. Assume the following activities occurred during the year: Required 1 a. Received from three investors $59,000 cash and land valued at $34,000; each investor was issued 1,500 shares of common stock with a par value of $0.10 per share. b. Purchased construction equipment for use in the business at a cost of $54,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Lent $3,500 to one of the investors, who signed a note due in six months. d. John Davis purchased a truck for personal use; paid $7,000 down and signed a one-year note for $32,000. e. Paid $22,000 on the note for the construction equipment in (b) (ignore interest). Required: 1. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts. 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: 4. Compute the market value per share of the stock. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts. Notes Receivable Cash 0 Beg. Bal. Beg. Bal. End. Bal End. Bal. Land Equipment 0 Beg. Bal. Beg. Bal. 0 End. Bal. End. Bal. Required 1 Required 2 Required 4 For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts. Notes Receivable Cash 0 Beg. Bal. Beg. Bal. 0 End. Bal. End. Bal. Equipment 0 Land 0 Beg. Bal. Beg. Bal. End. Bal. End. Bal. Notes Payable Common Stock Beg. Bal. 0 Beg. Bal. 0 End. Bal. End. Bal. Additional Paid-in Capital Beg. Bal. 0 End. Bal. Required 1 Required 2 > Accurate Builders construction company was incorporated by John Davis. Assume the following activities occurred during the year: a. Received from three investors $59,000 cash and land valued at $34,000; each investor was issued 1,500 shares of common stock with a par value of $0.10 per share. b. Purchased construction equipment for use in the business at a cost of $54,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Lent $3,500 to one of the investors, who signed a note due in six months. d. John Davis purchased a truck for personal use; paid $7,000 down and signed a one-year note for $32,000. e. Paid $22,000 on the note for the construction equipment in (b) (ignore interest). Required: 1. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts. 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: 4. Compute the market value per share of the stock. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 4 Compute the market value per share of the stock. (Round your answer to 2 decimal places.) Market value per share per share < Required 2 Required 4

Answer 1

Transactions involving Accurate Builders impact various T-accounts such as Cash, Land, Equipment, Notes Receivable, Common Stock, Additional Paid-in Capital, and Notes Payable. Personal transactions, like John Davis's truck purchase, do not affect the company's accounts. The market value per share cannot be calculated without the current market price and the number of outstanding shares.

Step-by-step explanation:

When Accurate Builders construction company receives investment and conducts various transactions, we can record these in T-accounts to reflect the changes in the company's financial position. Each transaction affects different accounts:

• Transaction impacts Cash, Land, Common Stock, and Additional Paid-in Capital.
• Transaction b affects Cash, Equipment, and Notes Payable.
• Transaction c alters Notes Receivable and Cash.
• Transaction d is irrelevant to the company as it is a personal transaction of John Davis.
• Transaction e impacts Cash and Notes Payable.

To compute the market value per share, we need the current market price and the number of outstanding shares which is not provided in the scenario, thus preventing calculation.