ACCOUNTING chapter 2 Homework The following information appl

ACCOUNTING chapter 2 Homework The following information applies to the questlons displayed below] Bearings & Brakes Corporation (B&B;) was Incorporated as a private company. The company\'s accounts included the following at June 30 $ 61,000 580,000 98,000 250,000 64,000 484,000 13,000 1,006,000 4,000 Accounts Payable Buildings Cash Common Stock Notes Payable (long-term Retained Earnings Supplies Ouring the month of July, the company had the following activitles: a. Issued 3,700 shares of common stock for $370,000 cash b. Borrowed $100,000 cash from a local bank, payable in four years Bought a building for $182.000, paid $74,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $98,000. e. Purchased supplies for $98,000 on account 6· value 2.50 points Enter the June 30 balances as the month\'s beginning balances in the T the effects of the jounal entries using the T-accounts -accounts below. Then record

Solution

Accounts Payable Particulars Amt. ($) Particulars Amt. ($) To balance c/d 159,000 By Balance b/d 61,000 By Supplies 98,000 159,000 159,000 Building Particulars Amt. ($) Particulars Amt. ($) To Balance b/d 580,000 By balance c/d 762,000 To cash 74,000 To Notes payable 108,000 762,000 762,000 Cash Particulars Amt. ($) Particulars Amt. ($) To Balance b/d 98,000 By Building 74,000 To Common stock 370,000 By Equipment 98,000 To Notes Payable 100,000 By balance c/d 396,000 568,000 568,000 Common Stock Particulars Amt. ($) Particulars Amt. ($) To balance c/d 620,000 By Balance b/d 250,000 By cash 370,000 620,000 620,000 Eqipment Particulars Amt. ($) Particulars Amt. ($) To balance b/d 164,000 By balance c/d 262,000 To cash 98,000 262,000 262,000 Land Particulars Amt. ($) Particulars Amt. ($) To Balance b/d 484,000 By balance c/d 484,000 484,000 484,000 Notes payable Particulars Amt. ($) Particulars Amt. ($) To balance c/d 221,000 By Balance b/d 13,000 By Cash 100,000 By Building 108,000 221,000 221,000 Retained Earnings Particulars Amt. ($) Particulars Amt. ($) To balance c/d 1,006,000 Balance b/d 1,006,000 1,006,000 1,006,000 Supplies Particulars Amt. ($) Particulars Amt. ($) Balance b/d 4,000 By balance c/d 102,000 To Cash 98,000 102,000 102,000