Required Information 5 value quired inf 1000 points companys

Required Information 5 value: quired inf 10.00 points company\'s accounts induded the following at June 30: 4. Prepare a trial balance at July 31 BEARINGS& BRAKES CORPORATION Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplios $ 88,000 630,000 103,000 300,000 174,000 509,000 6,000 1,031,000 9,000 Trial Balance Debit Credit During the month of July, the company had the following activities: a. Issued 4,200 shares of common stock for $420,000 cash. b. Borrowed $125,000 cash from a local bank, payable in four years. c. Bought a building for $192,000; paid $79,000 in cash and signed a three-year note for the Totals balance. d. Paid cash for equipment that cost $103,000. e. Purchased supplies for $103,000 on account. References eBook &Resources; Worksheet Learning Objective: 02-02 Apply transaction Learning Objective: 02-04 Prepare a trial balance and a classified balance sheet analysis to accounting transactions.

Solution

Adjustment Entries

T- Accounts

date

explanation

debit

credit

cash

balance

103000

building

79000

1-

cash

420000

common stock

420000

equipment

103000

common stock

420000

notes payable

125000

balance

466000

2-

cash

125000

total

648000

total

648000

notes payable

125000

common stock

3-

building

192000

balance

720000

balance

300000

cash

79000

cash

420000

notes payable

113000

total

720000

total

720000

4-

equipment

103000

notes payable

cash

103000

end balance

244000

balance

6000

cash

125000

5-

supplies

103000

building

113000

accounts payable

103000

total

244000

total

244000

Trial Balance

building

Explanation

Debit

Credit

balance

630000

balance

822000

cash

466000

cash

79000

common stock

720000

notes payable

113000

notes payable

244000

total

822000

total

822000

building

822000

equipment

277000

equipment

supplies

112000

balance

174000

balance

277000

accounts payable

191000

cash

103000

retained earnings

1031000

total

277000

total

277000

land

509000

2186000

2186000

supplies

balance

9000

balance

112000

accounts payable

103000

total

112000

total

112000

accounts payable

balance

191000

balance

88000

supplies

103000

total

191000

total

191000

	Adjustment Entries				T- Accounts
date	explanation	debit	credit			cash
					balance	103000	building	79000
1-	cash	420000			common stock	420000	equipment	103000
	common stock		420000		notes payable	125000	balance	466000
2-	cash	125000			total	648000	total	648000
	notes payable		125000
						common stock
3-	building	192000			balance	720000	balance	300000
	cash		79000				cash	420000
	notes payable		113000		total	720000	total	720000
4-	equipment	103000				notes payable
	cash		103000		end balance	244000	balance	6000
							cash	125000
5-	supplies	103000					building	113000
	accounts payable		103000		total	244000	total	244000
Trial Balance						building
Explanation	Debit	Credit			balance	630000	balance	822000
cash	466000				cash	79000
common stock		720000			notes payable	113000
notes payable		244000			total	822000	total	822000
building	822000
equipment	277000					equipment
supplies	112000				balance	174000	balance	277000
accounts payable		191000			cash	103000
retained earnings		1031000			total	277000	total	277000
land	509000
	2186000	2186000				supplies
					balance	9000	balance	112000
					accounts payable	103000
					total	112000	total	112000
						accounts payable
					balance	191000	balance	88000
							supplies	103000
					total	191000	total	191000