Required information [The following information applies to the questions displav

Question

Required information [The following information applies to the questions displaved below 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)22,750 Retained Earnings $ 6,700 268,000 10,150 404,000 34,750 112,000 8,550 During the month of July, the company had the following activities a. Issued 3,400 shares of common stock for $340.000 cash b. Borrowed $34.250 cash from a local bank, payable in two years C Bought a building for $211000; paid $55.000 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $127000 e Purchased supplies for $18,500 on account a. Summarize the journal entry effects from part 2 using T-accounts. TiP. Enter the July 1 balances as the month's beginning balances)

Explanation / Answer

CASH Beg bal 10150 a)issue of stock 340000 55000 c)purchase of building b)Borrowing from bank 34250 127000 d)purchase of equipment End Bal 202400 Supplies Beg Bal 8550 e)purchase supplies 18500 End Bal 27050 Equipment Beg Bal 34750 d)purchase 127000 End bal 161750 Building Beg Bal 268000 c)purchase 211000 ENd bal 479000 LAND Beg bal 112000 End bal 112000 Accounts payable 6700 Beg bal 18500 e)purchase of supplies 25200 End bal Note payable (long term) 22750 Beg bal 34250 b)borrowing 156000 [211000-55000] c)purchase of building 213000 End bal common stock 404000 beg bal 340000 a)issue of stock 744000 ENd bal Retained earning 0 Beg bal 0 End bal

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