Question
In: Accounting
Deliberate Speed Corporation (DSC) was incorporated as a private company. The company’s accounts included the following...
|
Deliberate Speed Corporation (DSC) was incorporated as a private company. The company’s accounts included the following at June 30: |
| Accounts Payable | $ | 28,400 | |
| Buildings | 114,000 | ||
| Cash | 38,000 | ||
| Common Stock | 215,000 | ||
| Equipment | 162,500 | ||
| Land | 286,000 | ||
| Notes Payable (long-term) | 2,400 | ||
| Retained Earnings | 370,900 | ||
|
Supplies |
16,200 | ||
| During the month of July, the company had the following activities: | |
| a. | Issued 3,900 shares of common stock for $390,000 cash. |
| b. | Borrowed $110,000 cash from a local bank, payable in two years. |
| c. | Bought a building for $251,750; paid $92,750 in cash and signed a three-year note for the balance. |
| d. | Paid cash for equipment that cost $243,000. |
| e. | Purchased supplies for $30,750 on account. |
Summarize the journal entry effects from part 2 using T-accounts.
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Solutions
Expert Solution
- T Accounts completed, as asked:
|
Cash |
|||
|
Beg. Bal. |
$ 38,000.00 |
c. |
$ 92,750.00 |
|
a. |
$ 390,000.00 |
d. |
$ 243,000.00 |
|
b. |
$ 110,000.00 |
||
|
End. Bal. |
$ 202,250.00 |
Debit balance |
|
|
Equipment |
|||
|
Beg. Bal. |
$ 162,500.00 |
||
|
d. |
$ 243,000.00 |
||
|
End. Bal. |
$ 405,500.00 |
Debit Balance |
|
|
Land |
|||
|
Beg. Bal. |
$ 286,000.00 |
||
|
End. Bal. |
$ 286,000.00 |
Debit Balance |
|
|
Notes Payable |
|||
|
Beg. Bal. |
$ 2,400.00 |
||
|
b. |
$ 110,000.00 |
||
|
c. |
$ 159,000.00 |
||
|
Credit Balance |
End. Bal. |
$ 271,400.00 |
|
|
Retained Earnings |
|||
|
Beg. Bal. |
$ 370,900.00 |
||
|
Credit Balance |
End. Bal. |
$ 370,900.00 |
|
|
Supplies |
|||
|
Beg. Bal. |
$ 16,200.00 |
||
|
e. |
$ 30,750.00 |
||
|
End. Bal. |
$ 46,950.00 |
Debit Balance |
|
|
Buildings |
|||
|
Beg. Bal. |
$ 114,000.00 |
||
|
c. |
$ 251,750.00 |
||
|
End. Bal. |
$ 365,750.00 |
Debit Balance |
|
|
Accounts Payable |
|||
|
Beg. Bal. |
$ 28,400.00 |
||
|
e. |
$ 30,750.00 |
||
|
Credit Balance |
End. Bal. |
$ 59,150.00 |
|
|
Common Stock |
|||
|
Beg. Bal. |
$ 215,000.00 |
||
|
a. |
$ 390,000.00 |
||
|
Credit balance |
End. Bal. |
$ 605,000.00 |
|
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