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PAZ-2 Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance; LO 2-2 Preparing and Interpreting the Balance Sheet Deliberate Speed Corporation (DSC) was incorporated as a private company. The company’s accounts included the following at June 30: Accounts Payable Buildings Cash Common Stock Equipment s 20,000 Land 100,000 Notes Payable (long-term) 36,000 Retained Earnings 180,000 Supplies 118,000 $200,000 2,000 259,000 7,000 During the month of July, the company had the following activities: a. Issued 4,000 shares of common stock for $400,000 cash. b. Borrowed $100,000 cash from a local bank, payable in two years. c. Bought a building for $182,000; paid $82,000 in cash and signed a three-year note for the balance Paid cash for equipment that cost $200,000. Purchased supplies for $30,000 on account. d. e.
Expert Answer
| Journal Entry | |||||||||
| No. | Accounting titles & Explanations | Debit | Credit | ||||||
| a. | Cash | 400,000 | |||||||
| Common stock | 400,000 | ||||||||
| b. | Cash | 100,000 | |||||||
| Bank loan payable | 100,000 | ||||||||
| c. | Building | 182,000 | |||||||
| Cash | 82,000 | ||||||||
| Notes payable | 100,000 | ||||||||
| d. | Equipment | 200,000 | |||||||
| Cash | 200,000 | ||||||||
| e. | Supplies | 30,000 | |||||||
| Accounts payable | 30,000 | ||||||||
| t- Accounts | |||||||||
| Cash | Equipment | ||||||||
| Beg Bal | 36,000 | 82,000 | c. | Beg bal | 118,000 | ||||
| a. | 400,000 | 200,000 | d. | d. | 200,000 | ||||
| b. | 100,000 | ||||||||
| End bal | 254,000 | end bal | 318,000 | ||||||
| Common Stock | bank loan payable | ||||||||
| 180,000 | Beg bal | 0 | Beg bal | ||||||
| 400,000 | a. | 100,000 | b | ||||||
| 580,000 | end bal | 100,000 | end bal | ||||||
| Building | Notes payable | ||||||||
| beg bal | 100,000 | 2,000 | Beg bal | ||||||
| c. | 182,000 | 100,000 | b | ||||||
| End bal | 282,000 | 102,000 | end bal | ||||||
| Accounts payable | land | ||||||||
| 20,000 | Beg Bal | beg bal | 200,000 | ||||||
| 30,000 | e. | ||||||||
| 50,000 | end bal | end bal | 200,000 | ||||||
| Retained earnings | supplies | ||||||||
| 259,000 | Beg bal | beg bal | 7,000 | ||||||
| e. | 30,000 | ||||||||
| 259,000 | end bal | End bal | 37,000 | ||||||
