Question

The following is a list of account balances for Pick-A-Pet, Inc., as of June 30, Year 3. Accounts Payable Accounts Receivable Cash Common Stock Equipment Logo and Trademarks Long-term Notes Payable Retained Eamings Software $ 369,600 84,000 741,100 687,600 61,800 425,000 270,600 119,600 135,500 The company entered into the following transactions during July, Year 3. Stockholders contribute $470.000 cash for additional ownership shares and the company borrows $235,000 in cash from a bank to buy new equipment by signing a formal agreement repay the loan in 2 years. No other transactions took place during July. Year 3. Required: a. Prepare a classified balance sheet for the company at June 30. Year 3. b. Show the effects of the July transactions on the basic accounting equation c. Prepare the journal entries that would be used to record the transactions Complete this question by entering your answers in Ise tabs below. Required A Required B Required C Prepare a classified balance sheet for the company at June 30, Year 3. PICK-A-PETS, INC. Balance Sheet At June 30, Year 3

Answer 1

Balance sheet Liabilities Assets Particulars Amount Amount Particulars Current liabilities Current assets 7,41,100.00 Accounts payable 84,000.00 Total current liabilities $ 3,69,600.00 $ 3,69,600.00 Cash Accounts receivable Total current assets 8,25,100.00 Long term notes payable Total liabilities $ 2,70,600.00 $ 6,40,200.00 Property, plant and equipment Equipment 61,800.00 $ 6,87,600.00 $ 1,19,600.00 $ 8,07,200.00 Common stock Retained earnings 4,25,000.00 Total stockholders equity Intangible assets Logo and trademark Software 1,35,500.00 14,47,400.00 Total liabilities and stockholders equity $ 14,47,400.00 Total Assets Stockholders equity 470000 (common stock) Assets Liabilities 470000 (cash) 235000 (equipment) 235000 (bank loan) Particulars DR CR Cash 4,70,000.00 Common stock 4,70,000.00 Issued additional common shaes for cash Equpment Bank loan 2,35,000.00 2,35,000.00 Purchased equipment on bank loan %24