Question

Bearings & Brakes Corporation (B&B) was incorporated as a private company. The company’s accounts included the following at June 30: Accounts Payable $ 88,000 Buildings 650,000 Cash 105,000 Common Stock 320,000 Equipment 178,000 Land 519,000 Notes Payable (long-term) 8,000 Retained Earnings 1,041,000 Supplies 5,000 During the month of July, the company had the following activities: Issued 4,400 shares of common stock for $440,000 cash. Borrowed $135,000 cash from a local bank, payable in four years. Bought a building for $196,000; paid $81,000 in cash and signed a three-year note for the balance. Paid cash for equipment that cost $105,000. Purchased supplies for $105,000 on account.

e Purchased supplies Tor $105,000 on account. 4. Prepare a trial balance at July 31. Credit BEARINGS & BRAKES CORPORATION Trial Balance For the Month Ended July 31 Debit Cash Common Stock Cash Notes Payable (short-term) Buildings Cash Notes Receivable (long-term) Equipment Cash . Totals $ 0 $ 0 cm

Answer 1

BEARINGS & BRAKES CORPORATION
Trial Balance
For the Month Ended July 31
	Debit	Credit
Accounts Payable		$       193,000
Buildings	$         846,000
Cash	$         494,000
Common Stock		$       760,000
Equipment	$         283,000
Land	$         519,000
Notes Payable (Long Term)		$       258,000
Retained Earnings		$    1,041,000
Supplies	$         110,000
Total	$     2,252,000	$    2,252,000

Here is the formula version

BEARINGS & BRAKES CORPORATION
Trial Balance
For the Month Ended July 31
	Debit	Credit
Accounts Payable		=88000+105000
Buildings	=650000+196000
Cash	=105000+440000+135000-81000-105000
Common Stock		=320000+440000
Equipment	=178000+105000
Land	519000
Notes Payable (Long Term)		=135000+8000+115000
Retained Earnings		1041000
Supplies	=5000+105000
Total	=SUM(D8:D18)	=SUM(E8:E18)