C ezto mheducationcomhmtpx hapter 2 HW Questions 1822 of 22

C ezto mheducation.com/hm.tpx hapter 2 HW Questions 18-22 (of 22) CP2-2 Recording Transactions (in a Journal and T-Accounts): Preparing and interpreting the Balance Sheet (LO 2-2, LO 2-3·LO 24, LO 2-5] IThe following information applies to the questions displayed elow Athleskc Performance Company (APC) was incorporated as a prvate company. The company\'s accounts ncluded the following at uy 1 Accounts Payable Bulding Cash Common Stock S 4,600 215,000 13,600 324000 22.000 98000 Land Notes Payable (ong term25,500 Retained Earmings Supplies 5500 During the month of July the company had the following activities a. Issued 3,900 shares of common stock for $390,000 cash b. Borrowed $35,750 cash from a local bank. payable in two years C. Bought a building for S208250. paid $62.250 in cash and signed a three year note for the balance d. Paid cash for equipment that cost $152,000 References CP2-2 Recording Transections (n a Journal and T-Accounts): Preparing and Interpreting the Balance Sheet LO 2-2, LO 2-3, LO 2-4 LO 2-5) Section Break

Solution

Journal entry

	Assets	=	Liabilities	+	Stockholders equity
	Cash		Supplies		Building		Equipment		Land		Accounts payable	Notes payable	Common stock	Retained earnings
Beg bal	13600		5500		215000		22000		98000		4600		25500		324000
a	390000														390000
b	35750												35750
c	-62250				208250								146000
d	-152000						152000
e			13100								13100
End	225100		18600		423250		174000		98000		17700		207250		714000