cO Not secure ezto.mheducation.com/hm.tpx Questions 18-22 (of 22) CP2-2 Recordin
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cO Not secure ezto.mheducation.com/hm.tpx Questions 18-22 (of 22) CP2-2 Recording Transactions (In a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet LO 2-2, LO 2-3, LO 2-4, LO 2-5 /The following information applies to the questions displayed below Athletic Performance Company (APC) was incorporabed as a private company The company's accounts included the following at July t Accounts Payable 6,350 Cash Common Slock Equipment Land Notes Payable pong-term) Retained Earnings Supplies 250000 6.400 354.000 25,250 108,000 34 500 5.200 During the month of Jiuly, the company had the following activities a Issued 2.200 shares of common stock for $270000 cash b. Borrowed $32,750 cash from a local bank, payable in two years c. Bought a bulding for $236,000; pald $62000 in cash and signed a three year note for the balance d. Paid cash for equipment that cost $182000 e. Purchased supplies for $13 200 on References Section Break CP2-2 Recording Transactions (in a Journal and T-Accounts), Preparing and Interpreting the Balance Sheet LO 2-2, LO 2-3LO 2-4, L 2-5) 8. 0.50 pointsExplanation / Answer
Answer
Cash
Supplies
Building
Equipment
Land
Accounts Payable
Notes Payable
Common Stock
Retained Earnings
Beg.
$ 6,400.00
$ 5,200.00
$ 250,000.00
$ 25,250.00
$ 108,000.00
$ 6,350.00
$ 34,500.00
$ 354,000.00
a.
$ 270,000.00
$ 270,000.00
b.
$ 32,750.00
$ 32,750.00
c.
$ (62,000.00)
$ 236,000.00
$ 174,000.00
d.
$ (187,000.00)
$ 187,000.00
e.
$ 13,200.00
$ 13,200.00
End.
$ 60,150.00
$ 18,400.00
$ 486,000.00
$ 212,250.00
$ 108,000.00
$ 19,550.00
$ 241,250.00
$ 624,000.00
$ -
Transactions
Accounts title
Debit
Credit
a.
Cash
$ 270,000.00
Common Stock
$ 270,000.00
(Common stock issued for cash)
b.
Cash
$ 32,750.00
Notes Payable (Long Term)
$ 32,750.00
(loan borrowed from bank)
c.
Building
$ 236,000.00
Cash
$ 62,000.00
Notes Payable (Long Term)
$ 174,000.00
(Building acquired)
d.
Equipment
$ 187,000.00
Cash
$ 187,000.00
(Equipment purchased)
e.
Supplies
$ 13,200.00
Accounts payable
$ 13,200.00
(Supplies purchased on account)
Cash
Beg.
$ 6,400.00
a.
$ 270,000.00
$ 62,000.00
c.
b.
$ 32,750.00
$ 187,000.00
d.
End. Bal
$ 60,150.00
Equipment
Beg.
$ 25,250.00
d.
$ 187,000.00
End. Bal
$ 212,250.00
Land
Beg.
$ 108,000.00
End. Bal
$ 108,000.00
Notes payable (Long Term)
Beg.
$ 34,500.00
$ 32,750.00
b.
$ 174,000.00
c.
End. Bal
$ 241,250.00
Retained Earnings
Beg.
End. Bal
$ -
Supplies
Beg.
$ 5,200.00
e.
$ 13,200.00
End. Bal
$ 18,400.00
Building
Beg.
$ 250,000.00
c.
$ 236,000.00
End. Bal
$ 486,000.00
Accounts Payable
Beg.
$ 6,350.00
$ 13,200.00
e.
End. Bal
$ 19,550.00
Common Stock
Beg.
$ 354,000.00
$ 270,000.00
a
End. Bal
$ 624,000.00
Accounts Name
Debit
Credit
Cash
$ 60,150.00
Supplies
$ 18,400.00
Building
$ 486,000.00
Equipment
$ 212,250.00
Land
$ 108,000.00
Accounts Payable
$ 19,550.00
Notes Payable
$ 241,250.00
Common Stock
$ 624,000.00
Retained Earnings
$ -
TOTALS
$ 884,800.00
$ 884,800.00
ASSETS
LIABILITIES
Current Assets:
Current Liabilities:
Cash
$ 60,150.00
Accounts Payable
$ 19,550.00
Supplies
$ 18,400.00
Total Current Liabilities
$ 19,550.00
Total Current Assets
$ 78,550.00
Long Term Liabilities:
Plant, Property & Equipment:
Notes Payable
$ 241,250.00
Land
$ 108,000.00
Total Long Term Liabilities
$ 241,250.00
Building
$ 486,000.00
Equipment
$ 212,250.00
Total Plant Property & Equipment
$ 806,250.00
Total Liabilities
$ 260,800.00
STOCKHOLDER's EQUITY
Common Stock
$ 624,000.00
Retained Earnings
$ -
Total Stockholder's Equity
$ 624,000.00
Total ASSETS
$ 884,800.00
Total Liabilities & Stockholder's Equity
$ 884,800.00
Cash
Supplies
Building
Equipment
Land
Accounts Payable
Notes Payable
Common Stock
Retained Earnings
Beg.
$ 6,400.00
$ 5,200.00
$ 250,000.00
$ 25,250.00
$ 108,000.00
$ 6,350.00
$ 34,500.00
$ 354,000.00
a.
$ 270,000.00
$ 270,000.00
b.
$ 32,750.00
$ 32,750.00
c.
$ (62,000.00)
$ 236,000.00
$ 174,000.00
d.
$ (187,000.00)
$ 187,000.00
e.
$ 13,200.00
$ 13,200.00
End.
$ 60,150.00
$ 18,400.00
$ 486,000.00
$ 212,250.00
$ 108,000.00
$ 19,550.00
$ 241,250.00
$ 624,000.00
$ -
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