a. Issued 4,400 shares of common stock for $440,000 cash. b. Borrowed $121,000 cash from a local bank, payable in two years. c Bought a building for $229,750; paid $88,750 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $226,000. e. Purchased supples for $54,750 on account. quired:
a. Issued 4,400 shares of common stock for $440,000 cash. b. Borrowed $121,000 cash from a local bank, payable in two years. c Bought a building for $229,750; paid $88,750 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $226,000. e. Purchased supples for $54,750 on account. quired:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer complete and properly
Transcribed Image Text:a. Issued 4,400 shares of common stock for $440,000 cash.
b. Borrowed $121,000 cash from a local bank, payable in two years.
c. Bought a building for $229,750; paid $88,750 in cash and signed a three-year note for the balance.
d. Pald cash for equipment that cost $226,000.
e. Purchased supples for $54,750 on account.
of 6
Required:
1. Analyze transactions (a)-fe) to determine their effects on the accounting equation. (Enter any decreases to account balances with
a minus sign.)
Book
Print
Assets
Liabilitios
Stockholders' Equity
Notes
Payable
Common
Stock
Accounts
Retained
Cash
Supplies
Bulldings Equipment
Land
Earnings
Payable
21.100
erences
Beginning Balanoe
55,500
16,100
144,000
08,000
275.000
6,700.
220.000
385,800
b.
d.
Ending Balanoe
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Required Information
(The following information applies to the questions displayed below.)
Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included the
following at June 30:
Accounte Payable
Buildings
21,100
144,000
55,500
220,000
143,000
275,000
6,700
305,000
16,100
Cash
Common Stook
Equipnent
Land
Notes Payable (long-term)
Retained Earnings
Supplies
During the month of July, the company had the folowing activities:
ces
a. Issued 4,400 shares of common stock for $440,000 cash.
b. Borrowed $121,000 cash from a local bank, payable in two years.
c. Bought a bullding for $229,750; paid $88,750 in cash and signed a three-year note for the balance.
d. Pald cash for equipment that cost $226,00o.
e. Purchased supplies for $54,750 on account.
Requlred:
1. Analyze transactions (a)-fe) to determine their effects on the accounting equation. (Enter any decreases to account balances with
a minus sign.)
Stockholders Eguity
Tnbilitias
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