[The following in applies to the questions displayed below] Bearings & Brakes Co

Question

[The following in 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: $ 76,000 590,000 99,000 260,000 166,000 489,000 2,000 1.011,000 5,000 Buildings Cash Equipment Land Supplies During the month of July, the company had the following activities: a. Issued 3,800 shares of common stock for $380,000 cash. b. Borrowed $105,000 cash from a local bank, payable in four years. c. Bought a building for $184,000: paid $75,000 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $99,000. e. Purchased supplies for $99,000 on account.

Explanation / Answer

3) T- Accounts: DEBIT AMOUNT $ CREDIT AMOUNT$ Cash a/c OB 99000 c 75000 a 380000 d 99000 b 105000 CB 410000 Equip a/c OB 166000 CB 265000 d 99000 Land a/c OB 489000 Notes payable a/c CB 216000 OB 2000 b 105000 c 109000 RE a/c OB 1011000 Supplies a/c OB 5000 CB 104000 e 99000 Buildings a/c OB 590000 CB 774000 c 184000 Accounts Payable a/c CB 175000 OB 76000 e 99000 Common Stock a/c CB 640000 OB 260000 a 380000 Trial Balance : Accounts Titles Debit$ Credit$ Cash 410000 Equip 265000 Land 489000 NP 216000 RE 1011000 Supplies 104000 Building 774000 AP 175000 CS 640000 TOTAL 2042000 2042000 Balance Sheet : Assets: amt $ Liabilities: amt $ Cash 410000 AP 175000 Supplies 104000 NP 216000 Current Assets 514000 CS 640000 Equipment 265000 RE 1011000 Land 489000 Building 774000 Total Assets 2042000 Total Liabilities 2042000

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