Question

Required Information PA2-2 Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance; Preparing and Interpreting the Balance Sheet[LO 2-2, LO 2-3, LO 2-4, LO 2-5) [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 Buildings cas Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies 28.4ee 114,00 38.000 215, 162, Sda 285, 2. e ne, de 15, 20e During the month of July, the company had the following activities o issued 3.900 shares of common stock for $390.000 cash b. Borrowed $110.000 cash from a local bank, payable in two years. C Bought a building for $251.750. paid $92.750 n cash and signed a three-year note for the balance d. Paid cash for equ pment that cost 1245.000 e Purchased supplies for $30.750 on account

Answer 1

Deliberate Speed Cooperation oc) Tournal Amonitin & Debit Credit cas - Particulares Cash Ale 390000 390000 aces of common stocle issued lloooo - To Common Stock Ale Being 3900 shares of common se for & 390000 for cash (6) Cash Ale Bosrou 7 To Artes (longterm) Being Cash borsowed from local beule pergely Illoooo 251750 92750 159000 243000 & Building the To Cast To Notes Sayable - long feen Being Building Searcheared for 4251756 ) 1$ 94750 Powidlin cash and Sabuce payable in X three years a lot To Cash the being quipment puchard for Cash & 24300) (e) supplies Ak 7o Accant poupable Being Supplies puechand an account) 243000 d Equipment Ak 30750 | 30750

DELIBERATE SPEED CORPORATION
T-Accounts
Cash Account for the month of July
Date	Particulars	Amount in $	Date	Particulars	Amount in $
1st July	To Balance b/d	38000		By Building A/c	92750
	To Common Stock A/c	390000		By Equipment A/c	243000
	To Borrowings	110000
			31st July	By Balance c/d	202250
		538000			538000
Common Stock Account for the month of July
Date	Particulars	Amount in $	Date	Particulars	Amount in $
			1st July	By Balance b/d	215000
31st July	To Balance c/d	605000		By Cash A/c	390000
		605000			605000
Borrowings Account for the month of July
Date	Particulars	Amount in $	Date	Particulars	Amount in $
				By Cash A/c	110000
31st July	To Balance c/d	110000
		110000			110000
Building Account for the month of July
Date	Particulars	Amount in $	Date	Particulars	Amount in $
1st July	To Balance b/d	114000
	To Cash A/c	92750
	To Notes Payable - Long Term	159000	31st July	By Balance c/d	365750
		365750			365750
Notes Payable Account for the month of July
Date	Particulars	Amount in $	Date	Particulars	Amount in $
			1st July	By Balance b/d	2400
				By Building A/c	159000
31st July	To Balance c/d	161400
		161400			161400
Equipment Account for the month of July
Date	Particulars	Amount in $	Date	Particulars	Amount in $
1st July	To Balance b/d	162500
	To Cash A/c	243000	31st July	By Balance c/d	405500
		405500			405500
Supplies Account for the month of July
Date	Particulars	Amount in $	Date	Particulars	Amount in $
1st July	To Balance b/d	16200
	To Accounts Payable A/c	30750
			31st July	By Balance c/d	46950
		46950			46950
Accounts Payable Account for the month of July
Date	Particulars	Amount in $	Date	Particulars	Amount in $
			1st July	By Balance b/d	28400
				By Supplies A/c	30750
31st July	To Balance c/d	59150
		59150			59150

DELIBERATE SPEED CORPORATION
Trial Balance
At July 31            Amount in $
Particulars	Debit	Credit
Cash	202250
Supplies	46950
Equipment	405500
Buildings	365750
Land	286000
Accounts Payable		59150
Notes Payable (Long Term)		161400
Borrowings		110000
Common Stock		605000
Retained Earnings		370900
Total	1306450	1306450

DELIBERATE SPEED CORPORATION
Balance Sheet
At July 31
Liabilities	Amount in $	Assets	Amount in $
Accounts Payable	59150	Cash	202250
Notes Payable (Long Term)	161400	Supplies	46950
Borrowings	110000	Equipment	405500
Common Stock	605000	Buildings	365750
Retained Earnings	370900	Land	286000
Total	1306450	Total	1306450