M Final Exam Chegg Study | Guided S/X > C D ezto.mheducation.com/hm.tpx?--0.4643

Question

M Final Exam Chegg Study | Guided S/X > C D ezto.mheducation.com/hm.tpx?--0.4643991801553974-146351506661 8 [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 $ 103,000 700,000 110,000 370,000 188,000 544,000 13,000 1,066,000 0,000 During the month of July, the company had the following activities: a. Issued 4,900 shares of common stock for $490,000 cash. b. Borrowed $160,000 cash from a local bank, payable in four years. c. Bought a building for $206,000; paid $86,000 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $110,000 e. Purchased supplies for $110,000 on account. 5 value: Required Information 5.00 points Required 1. Analyze transactions (a)(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equit 12:58

Explanation / Answer

1) Accounting equation Assets = Liabilities + Stockholders equity a) 490000 = 0 + 490000 b) 160000 = 160000 + 0 c) 206000-86000= 120000 = 120000 + 0 d) 110000 - 110000 = 0 = 0 + 0 e) 110000 = 110000 + 0 2) a) Cash Dr 490000         Common stock Cr 490000 b) Cash Dr 160000            Notes payable Cr 160000 c) Building Dr 206000         Cash Cr 86000         Notes Payable Cr 120000 d) Equipment Dr 110000         Cash Cr 110000 e) Supplies Dr 110000           Accounts payable Cr 110000 3)                 Cash Beg Balance 110000 By building 86000 To common stock 490000 By equipment 110000 To notes payable 160000 ending balance 564000 760000 760000             Supplies Beg balance 10000 ending balance 120000 To accounts payable 110000 120000 120000          Equipment Beg balance 188000 ending balance 298000 To cash 110000 298000 298000             Building Beg balance 700000 ending balance 906000 To cash 86000 To notes payable 120000 906000 906000           Land Beg balance 544000 ending balance 544000          Accounts payable ending balance 213000 Beg balance 103000 By supplies 110000 213000 213000             Notes Payable ending balance 293000 Beg balance 13000 By Cash 160000 By building 120000 293000 293000           Common stock Ending balance 860000 Beg balanc 370000 By Cash 490000 860000 860000            Retained earnings Beg balance 1066000 4) Trial Balance Dr Cr Accounts Payable 213000 Buildings 906000 Cash 564000 Common stock 860000 Equipment 298000 Land 544000 Notes Payable 293000 Retained earnings 1066000 Supplies 120000 2432000 2432000 5) Balance Sheet Assets Liabilities Cash 564000 Accounts Payable 213000 Supplies 120000 Notes Payable 293000 Buildings 906000 Common stock 860000 Equipment 298000 Retained earnings 1066000 Land 544000 2432000 2432000

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