Chapter 2 Hw C O Not secure eztomheducationcomhmtpx E connec

Chapter 2 Hw C O Not secure ezto.mheducation.com/hm.tpx E connect Principles of Accounting 12013: ACC apter 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 2-4, LO 2-5 (The foowing information applies to the questions displayed below Athletic Performance Company (APC was Incorporated as a private company The company\'s acconts Included the following at July t Accounts Payable Building Cash Common Stock Equipment Land Notes Payable (long term) Retained Earnings Supplies S 4,600 215,000 13,600 324,000 22,000 98,000 25,500 0 5,500 During the month of July the company had the folowing activitbles: 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 $208 250: paid $62.250 in cash and signed a three year note for the ballance. d. Pald cash for equipment that cost $152,000 e. Purchased supplies for $13,100 on account References CP2-2 Recording Transactions (in a Journal

Solution

Cash Supplies Beg Bal 13600 c 62250 Beg Bal 5500 a 390000 d 152000 e 13100 b 35750 End bal 225100 End bal 18600 Equipment Building Beg Bal 22000 Beg Bal 215000 d 152000 c 208250 End bal 174000 End bal 423250 Land Accounts Payable Beg Bal 98000 Beg Bal 4600 e 13100 End bal 98000 End bal 17700 Notes Payable Common Stock Beg Bal 25500 Beg Bal 324000 b 35750 a 390000 c 146000 (208250-62250) End bal 207250 End bal 714000 Retained Earning Beg Bal 0 End bal 0 Athletic Performance Trial Balance Debit Credit Accounts Payable 17700 Building 423250 Cash 225100 Common Stock 714000 Equipment 174000 Land 98000 Notes Payable(Long term) 207250 Retained Earning 0 Supplies 18600 938950 938950 Balance Sheet Fixed Assets Current Liabilities Building 423250 Accounts Payable 17700 Equipment 174000 Land 98000 Notes Payable(Long term) 207250 695250 Total liabilities 224950 Current Assets Owner\'s Equity Supplies 18600 Common Stock 714000 Cash 225100 Retained Earning 0 Total current assets 243700 Total assets 938950 Total liabilities and equity 938950