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 accountExplanation / 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
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