The following information applies to the questions displayed below.] Deliberate
ID: 2332247 • Letter: T
Question
The following information applies to the questions displayed below.] Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts include following at June 30: Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies $25,900 118,000 46,500 200,000 123,000 203,000 3,700 274,700 13,800 During the month of July, the company had the following activities: a. Issued 6,100 shares of common stock for $610,000 cash. b. Borrowed $114,000 cash from a local bank, payable in two years. c. Bought a building for $272,250; paid $84,250 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $238,000. e. Purchased supplies for $31,250 on account.Explanation / Answer
Journal entry :
No account and explanation debit credit a Cash 610000 Common Stock 610000 (To record issue common stock) b Cash 114000 Bank Loan 114000 (To record borrowing) c Building 272250 Cash 84250 Notes payable 188000 (To record building bought) d Equipment 238000 Cash 238000 (To record equipment bought) e Supplies 31250 Account payable 31250 (To record supplies purchased)Related Questions
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