The following events occurred for Johnson Company:

Received investment of cash by organizers and distributed to them 1,140 shares of $1 par value common stock with a market price of $25 per share.

Leased $8,300 of equipment, paying $1,500 in cash and signing a long-term right-of-use lease for the rest owed.

Borrowed $14,000 cash from a bank.

Loaned $900 to an employee who signed a note due in six months.

Purchased $19,922 of land; paid $9,000 in cash and signed a note for the balance.

To record these transactions, we need to analyze each one in terms of its impact on Johnson Company’s accounts. Here are the journal entries for each event:

1. **Investment of Cash and Issuance of Common Stock:**

   - *Debit*: Cash $= 1,140 \text{ shares} \times \$25 \, \text{(market price per share)} = \$28,500$
   - *Credit*: Common Stock (1,140 shares at $1 par value) $= 1,140 \times \$1 = \$1,140$
   - *Credit*: Additional Paid-in Capital (difference between market price and par value) $= 28,500 - 1,140 = \$27,360$

   **Journal Entry:**
   ```
   Debit: Cash                                 $28,500
   Credit: Common Stock                        $1,140
   Credit: Additional Paid-in Capital          $27,360
   ```

2. **Leased Equipment with Partial Cash Payment and Long-Term Lease Obligation:**

   - *Debit*: Equipment $= \$8,300$
   - *Credit*: Cash (paid in cash) $= \$1,500$
   - *Credit*: Lease Liability (long-term) $= 8,300 - 1,500 = \$6,800$

   **Journal Entry:**
   ```
   Debit: Equipment                           $8,300
   Credit: Cash                               $1,500
   Credit: Lease Liability                    $6,800
   ```

3. **Borrowed Cash from Bank:**

   - *Debit*: Cash $= \$14,000$
   - *Credit*: Notes Payable (or Loan Payable) $= \$14,000$

   **Journal Entry:**
   ```
   Debit: Cash                               $14,000
   Credit: Notes Payable                     $14,000
   ```

4. **Loaned Cash to an Employee with a Note Receivable:**

   - *Debit*: Notes Receivable $= \$900$
   - *Credit*: Cash $= \$900$

   **Journal Entry:**
   ```
   Debit: Notes Receivable                    $900
   Credit: Cash                               $900
   ```

5. **Purchased Land with Partial Cash Payment and a Note for the Balance:**

   - *Debit*: Land $= \$19,922$
   - *Credit*: Cash (partial payment) $= \$9,000$
   - *Credit*: Notes Payable (balance) $= 19,922 - 9,000 = \$10,922$

   **Journal Entry:**
   ```
   Debit: Land                               $19,922
   Credit: Cash                               $9,000
   Credit: Notes Payable                     $10,922
   ```

Each entry reflects the appropriate accounts impacted, balancing debits and credits as per double-entry accounting rules.

Would you like more details on any particular entry or concept? 

### Related Questions:
1. How would Johnson Company record dividends if distributed to shareholders later?
2. How should Johnson Company handle depreciation on the leased equipment?
3. What happens if the employee defaults on the $900 loan?
4. How would Johnson record interest expenses on the borrowed $14,000, if applicable?
5. What are the implications if the market price of shares fluctuates?

### Tip:
Always ensure that assets equal liabilities plus equity after each transaction to maintain the accounting equation in balance.

Explore detailed journal entries for Johnson Company’s recent transactions, including investment cash inflows, equipment leasing, bank loans, and land acquisition. This accounting solution illustrates double-entry principles, the accounting equation, and provides insights into equity, liability, and asset adjustments.

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