The following information applies to the questions displayed below.j Bearings &B
ID: 2538866 • Letter: T
Question
The following information applies to the questions displayed below.j Bearings &Brakes; Corporation (B&B;) was incorporated as a private company. The company's accounts included the following at June 30 Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies $50,000 500,000 90,000 170,000 148,000 444,000 5,000 966,000 9,000 During the month of Jly, the company had the following activities a. Issued 6,000 shares of common stock for $600,000 cash b. Borrowed 560,000 cash from a local bank, payable in four years. c. Bought a building for $166,000; paid $66,000 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $90,000 e. Purchased supplies for $90,000 on account.Explanation / Answer
Answer
Opening balances
Transaction entries effect
Closing Balances on Jul 31 [ANSWER]
Dr
Cr
Dr
Cr
Dr
Cr
Accounts payable
50000
90000
140000
Buildings
500000
166000
666000
Cash
90000
660000
156000
594000
Common Stock
170000
600000
770000
Equipment
148000
90000
238000
Land
444000
444000
Notes payable (Long term)
5000
60000
65000
Borrowings
100000
100000
Retained Earnings
966000
966000
Supplies
9000
90000
99000
TOTALs
1191000
1191000
1006000
1006000
$2041000
$2041000
ASSETS
=
LIABILITIES
+
EQUITY
Transaction
Cash +
Building +
land +
Equipment +
Supplies
=
Accounts Payable +
Notes payable
+
Common Stock +
Retained Earnings
Opening Balance
90000
500000
444000
148000
9000
=
50000
5000
+
170000
966000
a.
600000
=
+
600000
b.
60000
=
60000
+
c.
-66000
166000
=
100000
+
d.
-90000
90000
=
+
e.
90000
=
90000
+
Closing Balance [appearing in Jul 31 Trial Balance]
594000
666000
444000
238000
99000
=
140000
165000
+
770000
966000
Opening balances
Transaction entries effect
Closing Balances on Jul 31 [ANSWER]
Dr
Cr
Dr
Cr
Dr
Cr
Accounts payable
50000
90000
140000
Buildings
500000
166000
666000
Cash
90000
660000
156000
594000
Common Stock
170000
600000
770000
Equipment
148000
90000
238000
Land
444000
444000
Notes payable (Long term)
5000
60000
65000
Borrowings
100000
100000
Retained Earnings
966000
966000
Supplies
9000
90000
99000
TOTALs
1191000
1191000
1006000
1006000
$2041000
$2041000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.