No results Find on page cash basis The following information applies to the ques

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No results Find on page cash basis The following information applies to the questions displayed below Delitberate Speed Corporation osc) was incorporated as a private company. The company's acco Included the following at June 30: Accounts Payable Buidings Cash Common Stock $ 20,900 109,000 38,500 95,000 42,000 214,000 Land Notes Payable (long-term) Retalned Earnings Supplies 4,350 ong-term)293850 10,600 Durnng the month of July, the company had the following activities a. Issued 4,900 shares of common stock for $490,000 cash. b. Borrowed $117,000 cash from a local bank, payable in two years C. Bought a building for $267 250. paid $93,250 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $275,000. e. Purchased supplies for $53,250 on account velue 3.33 points 1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any O Type here to search

Explanation / Answer

Solution:

1) Analyzing the Transactions (a) - (e) to determine their Effects on the Accounting Equation:

Factory Building

Cash

+$267,250

-$93,250

Equipment

Cash

+$275,000

-$275,000

2) Recording the Transactions Effects Determined in Requirement 1:

3) Preparing the T- Accounts for the Above Transactions:

4) Preparing the Trial Balance:

DELIBERATE SPEED CORPORATION

Trial Balance

At July 31

5) Preparing the Balance Sheet at July 31:

DELIBERATE SPEED CORPORATION

Balance Sheet

At July 31

Assets = Liabilities + Stockholder's Equity a Cash +$490,000 Contributed Capital +$490,000 b Cash +$117,000 Notes Payable +$117,000 c

Factory Building

Cash

+$267,250

-$93,250

Notes Payable +$174,000 d

Equipment

Cash

+$275,000

-$275,000

e Supplies +$53,250 Accounts Payable +$53,250

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