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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c935c19-1cf7-489a-a37e-720b7e4b7b44%2F9d0c43eb-87b8-4daa-9b85-1e987a9b0462%2Fx1dc6ih_processed.jpeg&w=3840&q=75)
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 >
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education