Question

Deliberate Speed Corporation (DSC) 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 $ 25,900 118,000 46,500 200,000 123,000 203,000 3,700 274,700 13,800 During the month of July, the company had the following activities a. Issued 6,100 shares of common stock for $610,000 cash. b. Borrowed $114,000 cash from a local bank, payable in two years c Bought a building for $272,250; paid $84,250 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $238,000. e. Purchased supplies for $31,250 on account.

Answer 1

	Cash	Supplies	Buildings	Equipment	Land	=	Accounts payable	Notes payable	+	Common Stock	Retained earnings
Beginning	46,500	13,800	118,000	123,000	203,000		25,900	3,700		200,000	274,700
a	610,000									610,000
b	114,000							114,000
c	-84,250		272,250					188,000
d	-238,000			238,000
e		31,250					31,250
End	448,250	45,050	390,250	361,000	203,000		57,150	305,700	0	810,000	274,700

Balance sheet:

Assets		Liabilities
Current assets		Accounts payable	57,150
Cash	448,250	Notes payable	305,700
Supplies	45,050
Total current assets	493,300	Total liabilities	362,850
Non current assets		Stockholders equity
Buildings	390,250	Common Stock	810,000
Equipment	361,000	Retained earnings	274,700
Land	203,000
Total non current assets	954,250	Total equity	1,084,700
Total assets	1,447,550	Total liabilities and stockholders equity	1,447,550