Bearings & Brakes Corporation (B&B) was incorporated as a private company. The company's accounts included the following at June 30: Accounts Payable Buildings Cash Common Stock Equipment Land $82,000 610,000 101,000 280,000 170,000 499,000 Notes Payable (long-term) 4,000 Retained Earnings 1,021,000 Supplies During the month of July, the company had the following activities: 1. Issued 4,000 shares of common stock for $400,000 cash. 2. Borrowed $115,000 cash from a local bank, payable in four years. 3. Bought a building for $188,000; paid $77,000 in cash and signed a three-year note for the balance. 4. Paid cash for equipment that cost $101,000. 5. Purchased supplies for $101,000 on account. 7,000
Bearings & Brakes Corporation (B&B) was incorporated as a private company. The company's accounts included the following at June 30: Accounts Payable Buildings Cash Common Stock Equipment Land $82,000 610,000 101,000 280,000 170,000 499,000 Notes Payable (long-term) 4,000 Retained Earnings 1,021,000 Supplies During the month of July, the company had the following activities: 1. Issued 4,000 shares of common stock for $400,000 cash. 2. Borrowed $115,000 cash from a local bank, payable in four years. 3. Bought a building for $188,000; paid $77,000 in cash and signed a three-year note for the balance. 4. Paid cash for equipment that cost $101,000. 5. Purchased supplies for $101,000 on account. 7,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bearings & Brakes Corporation (B&B) was incorporated as a private company. The company's accounts included the
following at June 30:
Accounts Payable
Common Stock
280,000
170,000
499,000
Notes Payable (long-term) 4,000
Retained Earnings
Buildings
Cash
a.
b.
Supplies
During the month of July, the company had the following activities:
1. Issued 4,000 shares of common stock for $400,000 cash.
2. Borrowed $115,000 cash from a local bank, payable in four years.
3. Bought a building for $188,000; paid $77,000 in cash and signed a three-year note for the balance.
4. Paid cash for equipment that cost $101,000.
5. Purchased supplies for $101,000 on account.
C.
Equipment
Land
d.
Required:
1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account ba
a minus sign.)
$82,000
610,000
101,000
Cash
1,021,000
53
7,000
Supplies
Assets
Buildings Equipment
Liabilities
Accounts
Payable
Notes Payable
(long-term)
+
+
+
Stockholders
Equity
Common
Stock
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