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Must used A/B/C/D/E for the thing above plus the amounts Required information PA

ID: 2334644 • Letter: M

Question

Must used A/B/C/D/E for the thing above plus the amounts

Required information PA2-2 Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance; Preparing and Interpreting the Balance Sheet (LO 2-2, LO 2-3, LO 2-4, LO 2-5] The following information applies to the questions displayed below. Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included the following at June 30: Accounts Payable Buildinga Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies 21,100 144,000 55,500 220,000 43,000 275, 000 6,700 385, 800 16,100 During the month of July, the company had the following activities: a. Issued 4,400 shares of common stock for $440,000 cash. b. Borrowed $121,000 cash from a local bank, payable in two years. c. Bought a building for $229,750: paid $88,750 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $226,000. e. Purchased supplies for $54,750 on account

Explanation / Answer

Deliberate Speed Corporation

T – Accounts

Cash

Supplies

Debit

Credit

Balance

Debit

Credit

Balance

Beg. Balance

$55,500

$55,500

Beg. Bal

$16,100

$16,100

Common stock

$440,000

$495,500

Accounts Payable

$54,750

$70,850

Notes Payable

$121,000

$616,500

Building

$88,750

$527,750

Ending Balance

$70,850

$70,850

Equipment

$226,000

$301,750

Totals

$70,850

$70,850

Ending balance

$301,750

$301,750

Totals

$616,500

$616,500

Equipment

Buildings

Debit

Credit

Balance

Debit

Credit

Balance

Beg. Balance

$143,000

$143,000

Beg. Bal

$144,000

$144,000

Cash

$226,000

$369,000

Cash

$88,750

$232,750

Ending balance

$369,000

$369,000

Notes Payable

$141,000

$373,750

Totals

$369,000

$369,000

Ending Balance

$373,750

$373,750

Totals

$373,750

$373,750

Land

Accounts Payable

Debit

Credit

Balance

Debit

Credit

Balance

Beg. Balance

$275,000

$275,000

Beg. Balance

$21,100

$21,100

Supplies

$54,750

$75,850

Ending balance

$275,000

$275,000

Ending balance

$75,850

$75,850

Totals

$275,000

$275,000

Totals

$75,850

$75,850

Notes Payable (long-term)

Common Stock

Debit

Credit

Balance

Debit

Credit

Balance

Beg. Balance

$6,700

$6,700

Beg. Balance

$220,000

$220,000

Building

$141,000

$147,700

Cash

$440,000

$660,000

Cash

$121,000

$147,700

Ending balance

$660,000

$660,000

Ending balance

$268,700

Totals

$660,000

$660,000

Totals

$268,700

$268,700

Retained Earnings

Debit

Credit

Balance

$385,800

$385,800

Ending balance

$385,800

$385,800

Totals

$385,800

$385,800

Trial Balance

Deliberate Speed Corporation

Trial balance

as on June 30

Debit

Credit

Cash

$301,750

Supplies

$70,850

Land

$275,000

Buildings

$373,750

Equipment

$369,000

Accounts Payable

$75,850

Notes Payable (long-term)

$268,700

Common Stock

$660,000

Retained Earnings

$385,800

Total

$1,390,350

$1,390,350

Balance Sheet

Deliberate Speed Corporation

Balance Sheet as of June 30

Liabilities

Amount

Assets

Amount

$660,000

Fixed Assets

Retained Earnings

$385,800

Land

$275,000

Long-term Liabilities

Building

$373,750

Notes Payable (long-term)

$268,700

Equipment

$369,000

Current Liabilities

Current Assets

Accounts Payable

$75,850

Cash

$301,750

Supplies

$70,850

$1,390,350

$1,390,350

Cash

Supplies

Debit

Credit

Balance

Debit

Credit

Balance

Beg. Balance

$55,500

$55,500

Beg. Bal

$16,100

$16,100

Common stock

$440,000

$495,500

Accounts Payable

$54,750

$70,850

Notes Payable

$121,000

$616,500

Building

$88,750

$527,750

Ending Balance

$70,850

$70,850

Equipment

$226,000

$301,750

Totals

$70,850

$70,850

Ending balance

$301,750

$301,750

Totals

$616,500

$616,500

Equipment

Buildings

Debit

Credit

Balance

Debit

Credit

Balance

Beg. Balance

$143,000

$143,000

Beg. Bal

$144,000

$144,000

Cash

$226,000

$369,000

Cash

$88,750

$232,750

Ending balance

$369,000

$369,000

Notes Payable

$141,000

$373,750

Totals

$369,000

$369,000

Ending Balance

$373,750

$373,750

Totals

$373,750

$373,750

Land

Accounts Payable

Debit

Credit

Balance

Debit

Credit

Balance

Beg. Balance

$275,000

$275,000

Beg. Balance

$21,100

$21,100

Supplies

$54,750

$75,850

Ending balance

$275,000

$275,000

Ending balance

$75,850

$75,850

Totals

$275,000

$275,000

Totals

$75,850

$75,850

Notes Payable (long-term)

Common Stock

Debit

Credit

Balance

Debit

Credit

Balance

Beg. Balance

$6,700

$6,700

Beg. Balance

$220,000

$220,000

Building

$141,000

$147,700

Cash

$440,000

$660,000

Cash

$121,000

$147,700

Ending balance

$660,000

$660,000

Ending balance

$268,700

Totals

$660,000

$660,000

Totals

$268,700

$268,700

Retained Earnings

Debit

Credit

Balance

$385,800

$385,800

Ending balance

$385,800

$385,800

Totals

$385,800

$385,800