Question

Required information (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 Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies $ 27,400 146,000 52,75e 190,000 140,000 220,000 5,950 342,700 7,300 During the month of July, the company had the following activities: a. Issued 6,000 shares of common stock for $600,000 cash. b. Borrowed $151,000 cash from a local bank, payable in two years. c. Bought a building for $191,500; paid $92,500 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $228,000. e. Purchased supplies for $44,500 on account.

Answer 1

F K L R S T D Credit w Debit M O P Supplies Date Amount Date Beg. Bal 7300 le 44500 Amount Amount Amount 92500 228000 600000 U y Balance Sheet Amount Liabilities Current Liabilities: 483250 Accounts Payable 51800 535050 Total Current Liabilities Assets Current Assets: Cash Supplies Total Current Assets 600000 71900 71900 151000 F H Cash Date Amount Date Beg. Bal. 52750 C a a 600000 d b 151000 Balance 483250 Equipment Date Amount Date Beg. Bal. 140000 d 228000 Balance 368000 Land Date Amount Date Beg. Bal. 220000 151000 AL B 1 Date Journal 2 3 a Cash 4 Common Stock 5 (To Record issue of common stock) 6 7 b Cash B Notes Payable 3 (To Record borrowings from bank) ос Building 1 Cash 2 Notes Payable 3 (To Record Purchase of Building) 4 d Equipment 5 Cash 5 (To Record Purchase of equipment) 7 е Supplies 3 Accounts Payable (To Record Purchase of supplies) Amount Long Term Assets: Equipment Buildings Land 191500 255950 327850 Long Term Liabilities: 368000 Notes payable 337500 Total Liabilites 220000 Stockholder's Equity Common Stock Retained Earnings 92500 99000 Balance 51800 Buildings Date Amount Date Amount Beg. Bal 146000 C 191500 Balance 337500 Accounts Payable Date Amount Date Amount Beg Bal 27400 e 44500 Balance 71900 Common Stock Date Amount Date Amount Beg. Bal 190000 a 600000 790000 342700 Amount 228000 228000 Total 1460550 Total 1460550 44500 44500 Balance 220000 Notes Payable Date Amount Date Amount Beg. Bal 5950 b 151000 C 99000 Balance 255950 Retained Earnings Date Amount Date Amount Beg Bal 342700 Balance 790000 Credit Balance 342700 Deliberate Speed Corporation Trial Balance At Jul 31 Debit Cash 483250 Supplies 51800 Equipment 368000 Buildings 337500 Land 220000 Accounts Payable Notes Payable Common Stock Retained Earnings 71900 255950 790000 342700 Totals 1460550 1460550 Activate Wir