The following information applies to the questions displayed

[The following information applies to the questions displayed below.] Deliberate Speed Corporation (DSC) was incorporated as a private company. The company\'s accounts included the following at June 30: Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies $20,900 109,000 38,500 195,000 142,000 214,000 4,350 293,850 10,600 During 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.

Solution

Ans.3) T-accounts Cash Supplies Beg. Bal.              38,500 Beg. Bal.          10,600 a.           490,000 e.          53,250 b.           117,000 c.           (93,250) d.         (275,000) End. Bal.          63,850 End. Bal.           277,250 Buildings Equipment Beg. Bal.       109,000 Beg. Bal.           142,000 c.       267,250 d.           275,000 End. Bal.       376,250 End. Bal.           417,000 Accounts Payable Notes Payable Beg. Bal.      20,900 Beg. Bal.         4,350      53,250 e.    117,000 b.        174,000 c. End. Bal.      74,150 End. Bal.    295,350 Common Stock Retained Earnings Beg. Bal.    195,000 Beg. Bal.    293,850    490,000 a. End. Bal.    685,000 End. Bal.    293,850 Land Beg. Bal.           214,000 End. Bal.           214,000 Ans.5) DELIBERATE SPEED CORPORATION Balance Sheet 31 December, 2015 Liabilities Amt.($) Amt.($) Assets Amt.($) Amt.($) Current Liabilities: Current Assets:    Accounts Payable      74,150    Cash    277,250    Salaries Payable    Supplies       63,850 Total Current Liabilities             74,150 Long Term Liabilities: Total Current Assets         341,100    Notes Payable (Long Term)          295,350 Total Liabilities          369,500 Non Current Assets:     Land    214,000 Owners Equity:    Equipment    417,000    Common Stock    685,000    Buildings    376,250    Retained Earnings    293,850          978,850      1,007,250 Total Liabilities and Owners\' equity $ 1,348,350 Total Assets $ 1,348,350