[The following information applies to the questions displayed below.] 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 Notes Payable (long-term) Retained Earnings Supplies $88,000 650,000 105,000 320,000 178,000 519,000 8,000 1,041,000 5,000 During the month of July, the company had the following activities: a. Issued 4,400 shares of common stock for $440,000 cash. b. Borrowed $135,000 cash from a local bank, payable in four years. c. Bought a building for $196,000; paid $81,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $105,000. e. Purchased supplies for $105,000 on account.
[The following information applies to the questions displayed below.] 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 Notes Payable (long-term) Retained Earnings Supplies $88,000 650,000 105,000 320,000 178,000 519,000 8,000 1,041,000 5,000 During the month of July, the company had the following activities: a. Issued 4,400 shares of common stock for $440,000 cash. b. Borrowed $135,000 cash from a local bank, payable in four years. c. Bought a building for $196,000; paid $81,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $105,000. e. Purchased supplies for $105,000 on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1
![a.
b.
C.
d.
Required information
[The following information applies to the questions displayed below.]
Bearings & Brakes Corporation (B&B) was incorporated as a private company. The company's accounts included the
following at June 30:
e.
Accounts Payable
Buildings
Cash
Common Stock
Equipment
Land
Notes Payable (long-term)
Retained Earnings
Supplies
During the month of July, the company had the following activities:
a. Issued 4,400 shares of common stock for $440,000 cash.
b. Borrowed $135,000 cash from a local bank, payable in four years.
c. Bought a building for $196,000; paid $81,000 in cash and signed a three-year note for the balance.
d. Paid cash for equipment that cost $105,000.
e. Purchased supplies for $105,000 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.)
Cash
Supplies
Assets
$88,000
650,000
105,000
320,000
178,000
519,000
8,000
1,041,000
5,000
Buildings
Equipment
Liabilities
Accounts Notes Payable
Payable (long-term)
+
+
+
+
+
+
+
Stockholders
Equity
Common
Stock](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9054acca-4d40-495c-8b99-cdf164616df5%2Fbf6afbe8-f0e5-43c8-a6aa-a33c19939aa4%2Fni65oak_processed.png&w=3840&q=75)
Transcribed Image Text:a.
b.
C.
d.
Required information
[The following information applies to the questions displayed below.]
Bearings & Brakes Corporation (B&B) was incorporated as a private company. The company's accounts included the
following at June 30:
e.
Accounts Payable
Buildings
Cash
Common Stock
Equipment
Land
Notes Payable (long-term)
Retained Earnings
Supplies
During the month of July, the company had the following activities:
a. Issued 4,400 shares of common stock for $440,000 cash.
b. Borrowed $135,000 cash from a local bank, payable in four years.
c. Bought a building for $196,000; paid $81,000 in cash and signed a three-year note for the balance.
d. Paid cash for equipment that cost $105,000.
e. Purchased supplies for $105,000 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.)
Cash
Supplies
Assets
$88,000
650,000
105,000
320,000
178,000
519,000
8,000
1,041,000
5,000
Buildings
Equipment
Liabilities
Accounts Notes Payable
Payable (long-term)
+
+
+
+
+
+
+
Stockholders
Equity
Common
Stock
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