Athletic Performance Company (APC) was incorporated as a private company. The company's accounts included the following at July 1: $ 8,750 Accounts Payable Buildings 265,000 18,000 397,000 30,750 Cash Common Stock Equipment Land 118,500 Notes Payable (long-term) Retained Earnings 35,000 Supplies 8,500 During the month of July, the company had the following activities: a. Issued 3,300 shares of common stock for $330,000 cash. b. Borrowed $52,750 cash from a local bank, payable in two years. c. Bought a building for $193,500; paid $59,500 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $148,000. e. Purchased supplies for $18,400 on account.
Athletic Performance Company (APC) was incorporated as a private company. The company's accounts included the following at July 1: $ 8,750 Accounts Payable Buildings 265,000 18,000 397,000 30,750 Cash Common Stock Equipment Land 118,500 Notes Payable (long-term) Retained Earnings 35,000 Supplies 8,500 During the month of July, the company had the following activities: a. Issued 3,300 shares of common stock for $330,000 cash. b. Borrowed $52,750 cash from a local bank, payable in two years. c. Bought a building for $193,500; paid $59,500 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $148,000. e. Purchased supplies for $18,400 on account.
Athletic Performance Company (APC) was incorporated as a private company. The company's accounts included the following at July 1: $ 8,750 Accounts Payable Buildings 265,000 18,000 397,000 30,750 Cash Common Stock Equipment Land 118,500 Notes Payable (long-term) Retained Earnings 35,000 Supplies 8,500 During the month of July, the company had the following activities: a. Issued 3,300 shares of common stock for $330,000 cash. b. Borrowed $52,750 cash from a local bank, payable in two years. c. Bought a building for $193,500; paid $59,500 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $148,000. e. Purchased supplies for $18,400 on account.
Transcribed Image Text:Required information
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Athletic Performance Company (APC) was incorporated as a private company. The company's accounts included the
following at July 1:
$ 8,750
Accounts Payable
Buildings
265,000
18,000
397,000
30,750
118,500
Cash
Common Stock
Equipment
Land
Notes Payable (long-term)
Retained Earnings
35,000
Supplies
8,500
During the month of July, the company had the following activities:
a. Issued 3,300 shares of common stock for $330,000 cash.
b. Borrowed $52,750 cash from a local bank, payable in two years.
c. Bought a building for $193,500; paid $59,500 in cash and signed a three-year note for the balance.
d. Paid cash for equipment that cost $148,000.
e. Purchased supplies for $18,400 on account.
4. Prepare a trial balance at July 31. Include Retained Earnings on the balance sheet even though the account has a zero balance.
Transcribed Image Text:ATHLETIC PERFORMANCE COMPANY
Balance Sheet
At July 31
Assets
Liabilities
Current Assets
Current Liabilities
Cash
$
193,250
Accounts Payable
$
27,150
Supplies
26,900
Total Current Liabilities
27,150
Total Current Assets
220,150 Notes Payable (long-term)
235,750
Land
118,500 Total Liabilities
262,900
Buildings
458,500
Stockholders' Equity
Equipment
178,750
Common Stock
727,000
Retained Earnings
727,000
Total Assets
$
975,900 Total Liabilities and Stockholders' Equity
2$
989,900
Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.
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