Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-
ID: 2421482 • Letter: A
Question
Accounts Payable Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies $ 20,000 00,000 36,000 180,000 118,000 200,000 2,000 259,000 7,000 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 $100,000 cash from a local bank, payable in two years. c. Bought a building for $182,000; paid $82,000 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $200,000. e. Purchased supplies for $30,000 on account.Explanation / Answer
Trial balance:
Dr. Cr.
cash[36000+400000+100000-82000 -200000] 254000
equipment[118000+200000] 318000
Land 200000
Notes payable[2000+100000+100000] 202000
Accounts payable[20000+30000] 50000
Retained earning 259000
Building[100000+182000] 282000
supplies[7000 + 30000] 37000
Common stock[180000+400000] - 580000
$1091000 $1091000
5. Assets
current assets
cash 254000
supplies 37000
total current asset 291000
fixed assets
equipment 318000
Land 200000
Building 282000
Assets $1091000
Liabilities
current liabilities
Notes payable 202000
Accounts payable 50000
Total current liabilities 252000
equity
Retained earning 259000
common stock 580000
liabilities $1091000