Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included the following at June 30: Accounts Payable Building Cash Contributed Capital Equipment $ 10,000 Land 100,000 Notes Payable (long-term) Retained Earnings 26,000 180,000 Supplies 118,000 During the month of July, the company had the following transactions: a. Issued 4,000 shares for $400,000 cash. $ 200,000 2,000 259,000 7,000 b. Borrowed $90,000 cash from a local bank, payable in two years. c. Bought a factory building for $182,000; paid $82,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $200,000. e. Purchased supplies for $30,000 on account. Required: 1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a inurin
Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included the following at June 30: Accounts Payable Building Cash Contributed Capital Equipment $ 10,000 Land 100,000 Notes Payable (long-term) Retained Earnings 26,000 180,000 Supplies 118,000 During the month of July, the company had the following transactions: a. Issued 4,000 shares for $400,000 cash. $ 200,000 2,000 259,000 7,000 b. Borrowed $90,000 cash from a local bank, payable in two years. c. Bought a factory building for $182,000; paid $82,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $200,000. e. Purchased supplies for $30,000 on account. Required: 1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a inurin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer within the proper format with all supporting calculation seperately
Transcribed Image Text:Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included the following at June
30:
Accounts Payable
Building
Cash
Contributed Capital
Equipment
During the month of July, the company had the following transactions:
a. Issued 4,000 shares for $400,000 cash.
Transaction
a.
b.
C.
b. Borrowed $90,000 cash from a local bank, payable in two years.
c. Bought a factory building for $182,000; paid $82,000 in cash and signed a three-year note for the balance.
d. Paid cash for equipment that cost $200,000.
e. Purchased supplies for $30,000 on account.
d.
0.
Required:
1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a
minus sign.)
$ 10,000
View transaction list
100,000
26,000
180,000 Supplies
118,000
<
Land
Notes Payable (long-term)
Retained Earnings
1
Journal entry worksheet
2 3 4 5
Assots
2. Record the transaction effects determined in requirement 1 using a journal entry format. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
Transaction
a.
Issued 4,000 shares for $400,000 cash.
Note: Enter debits before credits.
$ 200,000
2,000
259,000
7,000
General Journal
Liabilities
Debit
Shareholders' Equity
Credit
Transcribed Image Text:3. Summarize the journal entry effects from requirement 2 using T-accounts.
Beg. bal.
End. bal.
Beg. bal.
End. bal.
Beg. bal.
End. bal.
Beg. bal.
End. bal.
Beg. bal.
Cash
Factory Building
Land
Notes Payable
Beg. bal.
End. bal.
Beg. bal.
End. bal.
Beg. bal.
End. bal.
Beg. bal.
End. bal.
Retained Earnings
Supplies
Equipment
Accounts Payable
Contributed Capital
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