The following information applies to the questions displayed below.j Bearings &B

Question

The following information applies to the questions displayed below.j 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 $50,000 500,000 90,000 170,000 148,000 444,000 5,000 966,000 9,000 During the month of Jly, the company had the following activities a. Issued 6,000 shares of common stock for $600,000 cash b. Borrowed 560,000 cash from a local bank, payable in four years. c. Bought a building for $166,000; paid $66,000 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $90,000 e. Purchased supplies for $90,000 on account.

Explanation / Answer

Cash Beg Balance $                 90,000 $              66,000 Paid for building Issue ne common stock $             6,00,000 $              90,000 Equipment Borrowed $                 60,000 Total $             7,50,000 # $           1,56,000 Total Ending Balance $             5,94,000 Supplies Beg Balance $                   9,000 Purchase $                 90,000 Total $                 99,000 # $                        -   Total Ennding Balance $                 99,000 Equipment Beg Balance $             1,48,000 Equipment $                 90,000 Total $             2,38,000 # $                        -   Total Ennding Balance $             2,38,000 Building Beg Balance $             5,00,000 Building $             1,66,000 Total $             6,66,000 # $                        -   Total Ennding Balance $             6,66,000 LAND Beg Balance $             4,44,000 Total $             4,44,000 # $                        -   Total Ennding Balance $             4,44,000 Account Payable $              50,000 Beg. Balance $              90,000 Purchase Total $                          -   # $           1,40,000 Total Ennding Balance $             1,40,000 Notes Payable $                 5,000 Beg. Balance $           1,00,000 Accept against building Total $                          -   # $           1,05,000 Total Ennding Balance $             1,05,000 Common Stock $           1,70,000 Beg. Balance $           6,00,000 Issue new common stock Total $                          -   # $           7,70,000 Total Ennding Balance $             7,70,000 Retained Earnings $           9,66,000 Beg. Balance Total $                          -   # $           9,66,000 Total Ennding Balance $             9,66,000

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