Question

Deliberate Speed Corporation (DSC) was incorporated as a private company on June 1, 2017. The company's accounts included the following at June 30, 2017: $ 211,000 Accounts Payable Factory Building Cash Contributed Capital Equipment $ 21,000 103,300 29,300 191,00 129,000 Land Notes Payable, due 2019 Retained Earnings Supplies 264,500 8,100 During the month of July, the company had the following activities: a. Issued 3,780 shares for $378.000 cash. b. Borrowed $112,000 cash from a local bank, payable June 30, 2020 Bought a factory building for $204,000 paid $93,000 in cash and signed a three-year note for the balance. d. . e. Purchased supplies for $33,300 on account Required: 1. Analyze transactions (0)–(6) to determine their effects on the accounting equation (Enter any decreases to account balances with a minus sign.) Liabilities Shareholders' Equity 3 112,000 Contributed capital 378.000 Transaction Assets a Cash 378,000 b. Cash 112,000 Notes payable C Factory building 204,000 Cash (93,000) Notes payable d. Equipment 222.000 Cash (222,000) e. Supplies 33,300 Accounts payable "Red but indicates no response was expected in a celor a formule-based calculation is incorrecto point deducted 111,000 33,300 .

Answer 1

1)

TRANSACTION ASSTES ( $ )   = LIABILITIES ($) + SHAREHOLDER'S EQUITY($)

   a. Cash 378,000 Common stock 378,000

b. Cash 112,000 Notes payable 112,000

c   Factory building 204,000 Notes payable 111,000

   Cash - 93,000

    d. Equipment 222,000

Cash - 222,000

e.   supplies 33,300     Accounts payable 33,300

3) CASH ACCCOUNT

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Beginning balance $ 29,300 c. Factory building    $ 93,000

a.Contributed Capital       $ 378,000 d. Equipment $ 222,000

b. Notes payable    $ 112,000 Closing balance $ 204,300

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$ 519,300 $ 519,300

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SUPPLIES ACCOUNT  

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Beginning balance $ 8,100   

e.  Accounts payable $ 33,300 Closing balance $ 41,400

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$ 41,400 $ 41,400

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FACTORY BUILDING

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Beginning balance $ 103,300   

c. Cash $ 93,000

c. Notes payable $ 111,000 Closing balance $ 307,300

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$ 307,300 $ 307,300

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EQUIPMENT

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Beginning balance $ 129,000

d. Cash $ 222,000 Closing balance $ 351,000

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$ 351,000 $ 351,000

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LAND

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Beginning balance $ 211 , 000

Closing balace $ 211,000

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211,000 211,000

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ACCOUNTS PAYABLE

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Beginning balance $ 21,000

Closing balance $ 54,300 e.Supplies $ 33,300

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$ 54,300 $ 54,300

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NOTES PAYABLE

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Beginning balance $ 4,200

b. Cash $ 112,000

Closing balance $ 227,200 c. Factory building $ 111,000

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$ 227,200 $ 227,200

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CONTRIBUTED CAPITAL

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Beginning balance $ 191,000

Closing balance $ 569,000 a. Cash $ 378,000

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$ 569,000 $ 569,000

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RETAINED EARNINGS

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Beginning balance $ 264,500

closing balance $ 264,500

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$ 264,500 $ 264,500

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4) DELIBARATE SPEED CORPORATION

   BALANCE SHEET AS ON JULY 31, 2017

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ASSETS LIABILITIES

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CURRENT ASSETS $ CURRENT LIABILITIES $

Cash 204,300 Accounts payable 227,200

Supplies 41,400 Notes payable 54,300

NON CURRENT ASSETS SHAREHOLDER'S FUNDS

Factory building 307,300 Contributed Capital 569,000

Land 211,000 Retained earnings 264,500

Equipment 351,000

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TOTAL ASSETS $  1,115,000 TOTAL LIABILITIES $ 1,115,000

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