Question

6 Required information The foliowing information apples to the questions dispioyed below) Part 3 of 6 Bearings & Brakes Corporation G388) was incorporated as a private company. The company's accounts following at June 30 10 points Accounts Payable Buildings Cash Connon Stock Equipnent Land Notes Payable (long term) Retained Earnings Supplies $ 88,000 658,806 105,800 326,800 178,8e8 519,800 Print 8,690 1,841,00ee 5,800 During the month of July, the company had the following activities a. Issued 4.400 shares of common stock for $440,000 cash b. Borrowed $135,000 cash from a local bank, payable in four years c Bought a building for $196,000, paid $81,000 in cash and signed a three-year note for the balance d Paid cash for equipment that cost $105,000 e Purchased supplies for $105,000 on account. Prev 67890f9 111 Next > O Type here to search

Answer 1

Bearings and Brakes Corporation (B&B)

T- Accounts

Bearings and Brakes Corporation (B&B)
T-Accounts
	Cash					Buildings
Beg. Bal.	$105,000				Beg. Balance	$650,000	0	0
a.	$440,000	c.	81,000		c.	$81,000
b.	$135,000	d.	$105,000			$115,000		0
Ending Bal.	$494,000				Ending Balance	$846,000
	Equipment					Supplies
Beg. Balance	$178,000				Beg. Balance	$5,000
d.	105,000		0		e.	$105,000		0
			0
Ending Balance	$283,000				Ending Balance	$110,000
	Land					Accounts Payable
Beg. Balance	$519,000				Beg. Balance			$88,000
							e.	$105,000
			0			0
Ending Balance	$519,000
					Ending Balance			$193,000
	Notes Payable (Long-term)					Bank Loan
Beg. Balance			$8,000		Beg. Balance			0
		c.	$115,000				b.	$135,000
Ending Balance			$123,000		Ending Balance			$135,000
	Common Stock					Retained Earnings
Beg. Balance			$320,000		Beg. Balance			$1,041,000
		a.	$440,000
					Ending Balance			$1,041,000
Ending Balance			$760,000