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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: Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies 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. 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 minus sign.) Beginning Balance a. b. C. d. $ 20,000 100,000 36,000 180,000 118,000 200,000 2,000 e Assets 36,000 Cash Supplies Buildings Equipment Land = 7,000 100,000 118,000 200,000 = = = = = Liabilities Accounts Payable 20,000 Notes Payable (long-term) + 2,000+ + + + + Stockholders' Equity Retained Earnings Common Stock 180,000 259,000

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: Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies 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. 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 minus sign.) Beginning Balance a. b. C. d. $ 20,000 100,000 36,000 180,000 118,000 200,000 2,000 e Assets 36,000 Cash Supplies Buildings Equipment Land = 7,000 100,000 118,000 200,000 = = = = = Liabilities Accounts Payable 20,000 Notes Payable (long-term) + 2,000+ + + + + Stockholders' Equity Retained Earnings Common Stock 180,000 259,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: Accounts Payable Buildings $ 20,000 100,000 36,000 180,000 118,000 200,000 2,000 259,000 7,000 During the month of July, the company had the following activities: Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies 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. 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 minus sign.) Beginning Balance a. b. C. d. e. Assets Cash Supplies Buildings Equipment Land 36,000 = 7,000 100,000 118,000 200,000 = < Prev = ||||||| Liabilities Accounts Payable 20,000 1 2 S 3 Notes Payable (long-term) + 2,000+ 6 + of 6 Stockholders' Equity Retained Earnings Common Stock 180,000 259,000 Next >
Transcribed Image Text: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: Accounts Payable Buildings $ 20,000 100,000 36,000 180,000 118,000 200,000 2,000 259,000 7,000 During the month of July, the company had the following activities: Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies 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. 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 minus sign.) Beginning Balance a. b. C. d. e. Assets Cash Supplies Buildings Equipment Land 36,000 = 7,000 100,000 118,000 200,000 = < Prev = ||||||| Liabilities Accounts Payable 20,000 1 2 S 3 Notes Payable (long-term) + 2,000+ 6 + of 6 Stockholders' Equity Retained Earnings Common Stock 180,000 259,000 Next >
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