No results Find on page cash basis The following information

No results Find on page cash basis The following information applies to the questions displayed below Delitberate Speed Corporation osc) was incorporated as a private company. The company\'s acco Included the following at June 30: Accounts Payable Buidings Cash Common Stock $ 20,900 109,000 38,500 95,000 42,000 214,000 Land Notes Payable (long-term) Retalned Earnings Supplies 4,350 ong-term)293850 10,600 Durnng the month of July, the company had the following activities a. Issued 4,900 shares of common stock for $490,000 cash. b. Borrowed $117,000 cash from a local bank, payable in two years C. Bought a building for $267 250. paid $93,250 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $275,000. e. Purchased supplies for $53,250 on account velue 3.33 points 1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any O Type here to search

Solution

Solution:

1) Analyzing the Transactions (a) - (e) to determine their Effects on the Accounting Equation:

Factory Building

Cash

+$267,250

-$93,250

Equipment

Cash

+$275,000

-$275,000

2) Recording the Transactions Effects Determined in Requirement 1:

3) Preparing the T- Accounts for the Above Transactions:

4) Preparing the Trial Balance:

DELIBERATE SPEED CORPORATION

Trial Balance

At July 31

5) Preparing the Balance Sheet at July 31:

DELIBERATE SPEED CORPORATION

Balance Sheet

At July 31

	Assets	=	Liabilities	+	Stockholder\'s Equity
a	Cash	+$490,000					Contributed Capital	+$490,000
b	Cash	+$117,000		Notes Payable	+$117,000
c	Factory Building Cash	+$267,250 -$93,250		Notes Payable	+$174,000
d	Equipment Cash	+$275,000 -$275,000
e	Supplies	+$53,250		Accounts Payable	+$53,250