Question

[The following information applies to the questions displayed below.] Deliberate Speed Corporation (DSC) was incorporated as a private company. The company’s accounts included the following at June 30:

Accounts Payable $ 27,400

Buildings 146,000

Cash 52,750

Common Stock 190,000

Equipment 140,000

Land 220,000

Notes Payable (long-term) 5,950

Retained Earnings 342,700

Supplies 7,300

During the month of July, the company had the following activities:

Issued 6,000 shares of common stock for $600,000 cash.

Borrowed $151,000 cash from a local bank, payable in two years.

Bought a building for $191,500; paid $92,500 in cash and signed a three-year note for the balance.

Paid cash for equipment that cost $228,000.

Purchased supplies for $44,500 on account

Please prepare a trial balance at July 31.

Answer 1

Trial Balance at July 31:
	As on June 30		Transactions during July		As on July 31
Account Title	Debit $	Credit $	Debit $	Credit $	Debit $	Credit $
Cash	52750		430500		483250
supplies	7300		44500		51800
Land	220000				220000
Building	146000		191500		337500
Equipment	140000		228000		368000
Accounts Payable		27400		44500		71900
Notes Payable (long term)		5950		99000		104950
Long term borrowing (Bank)				151000		151000
Common stock		190000		600000		790000
Retained Earnings		342700				342700
Total	566050	566050	894500	894500	1460550	1460550