Athletic Performance Company (APC) was incorporated as a private company. The co
ID: 2330207 • Letter: A
Question
Athletic Performance Company (APC) was incorporated as a private company. The company’s accounts included the following at July 1: Accounts Payable $ 6,600 Buildings 209,000 Cash 12,850 Common Stock 310,000 Equipment 20,250 Land 106,500 Notes Payable (long-term) 40,250 Retained Earnings 0 Supplies 8,250During the month of July, the company had the following activities: aIssued 2,600 shares of common stock for $260,000 cash. bBorrowed $41,000 cash from a local bank, payable in two years. cBought a building for $182,500; paid $49,500 in cash and signed a three-year note for the balance. dPaid cash for equipment that cost $166,000. ePurchased supplies for $17,400 on account. Athletic Performance Company (APC) was incorporated as a private company. The company's accounts included the following at July 1: Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies $ 6,600 209,000 12,850 310,000 20,250 106,500 40,250 8,250 During the month of July, the company had the following activities: a. Issued 2,600 shares of common stock for $260,000 cash. b. Borrowed $41,000 cash from a local bank, payable in two years. c. Bought a building for $182,500; paid $49,500 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $166,000. e. Purchased supplies for $17,400 on account.
Explanation / Answer
Cash Beg. $12,850 (a) $2,60,000 $49,500 (c) (b) $41,000 $1,66,000 (d) End. $98,350 Supplies Beg. $8,250 (e) $17,400 End. $25,650 Equipment Beg. $20,250 (d) $1,66,000 End. $1,86,250 Building Beg. $2,09,000 (c) $1,82,500 End. $3,91,500 Land Beg. $1,06,500 End. $1,06,500 Accounts Payable $6,600 Beg. $17,400 (e) $24,000 End. Notes Payable $40,250 Beg. $41,000 (b) $1,82,500 (c) $2,63,750 End. Common Stock $3,10,000 Beg. $26,000 (a) $3,36,000 End. Retained Earnings $0 Beg. $0 End
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