Question

Required Information [The following information applies to the questions displayed below) Athletic Performance Company (APC) was incorporated as a private company. The company's accounts included the following at July 1 Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long- term) Retained Earnings Supplies $ 5,300 170,000 22,550 336,000 25,750 137,500 18,750 4,250 During the month of July, the company had the following activities: a. Issued 3,600 shares of common stock for $360,000 cash. b Borrowed $47.000 cash from a local bank, payable in two years. C Bought a building for $204,750; paid $41,750 in cash and signed a three-year note for the balance d. Pald cash for equipment that cost $250,000. e Purchased supplies for $14,600 on account. 4. Prepare a trial balance at July 31.

Answer 1

Entry-(e) Debit Credit $14,600 Account Titles Cash Supplies Land Buildings Equipment Accounts Payable Notes Payable (Long-Term) Common stock Retained Earnings Totals Athletic Performance Company Trial Balance (Using Worksheet) For the Month Ended July 31 Opening Trial Balance Entry-(a) Entry-(b) Entry-(c) Entry-(d) Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit $22,550 $360,000 $47,000 $41,750 $250,000 $4,250 $137,500 $170,000 $204,750 $25,750 $250,000 $5,300 $18,750 $ 47,000 $163,000 $336,000 $360,000 $0 $360,050 $360,050 $360,000 $360,000 $47,000 $47,000 $204,750 $204,750 $250,000 $250,000 Updated Trial Balance Debit Credit $137,800 $18,850 $137,500 $374,750 $275,750 $19,900 $228,750 $696,000 $14,600 $0 $14,600 $14,600 $944,650 $944,650

Explanation: Adjusted balance for Cash = $22550 + $360000 + $47000 - $41750 + $250000 = $137800; Adjusted balance for Supplies = $4250 + $14600 = $18850; Adjusted balance for Buildings = $170000 + $204750 = $374750; Adjusted balance for Equipment = $25750 + $250000 = $275750; Adjusted balance for Accounts Payable = $5300 + $14600 = $19900; Adjusted balance for Notes Payable (Long-Term) = $18750 + $47000 + $163000 = $228750; Adjusted balance for Common stock = $336000 + $360000 = $696000.