Question

During the month of July, the company had the following activities: a. Issued 4,000 shares of common stock for $400,000 cash. b. Borrowed $115,000 cash from a local bank, payable in four years. c Bought a building for $188,000; paid $77,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $101,000. e Purchased supplies for $101,000 on account. 4. Prepare a trial balance at July 31. BEARINGS & BRAKES CORPORATION Trial Balance Debit Credit < Prev CD 7 8 9 of 9 Next > a o arch o e

Answer 1

BEARINGS AND BRAKES CORPORATION

Trail Balance

Particulars	Debit	Credit
Cash	$337,000
Office Equipment	$101,000
Building	$188,000
Bank Loan		$115,000
Common Stocks		$400,000
Accounts payables		$212,000
Supplies	$101,000
TOTAL	$727000	$727000

BEARINGS AND BRAKES CORPORATION

Balance Sheet at July 31

ASSET	AMOUNT	LIABILITY	AMOUNT
Current Assets:		Current Liabilities:
Cash	$337000	Accounts Payables	$212000
Supplies	$101000	Bank Loan	$115000
Fixed Assets:		Equity:
Office Equipment	$101000	Common Stocks	$400000
Building	$188000
TOTAL	$727000	TOTAL	$727000