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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.
Cash Supplies
Beg. Bal. Beg. Bal.
a. 390,000
End. Bal. 390,000 End. Bal.
Equipment Buildings
Beg. Bal. Beg. Bal.
End. Bal. End. Bal.
Land Accounts Payable
Beg. Bal. Beg. Bal.
End. Bal. End. Bal.
Notes Payable Common Stock
Beg. Bal. Beg. Bal.
End. Bal. End. Bal.
Retained Earnings
Beg. Bal.
End. Bal.

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

ekkarill92 answered 2 years ago
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