Owner-manager Nicole Cade established Athletic Performance Company as a sole proprietorship on July 1, 2010. The company's chart of accounts included the following:

During the month of July, the company had the following activities:
(a) Received $200,000 cash from Nicole Cade.
(b) Borrowed $30,000 cash from a local bank, payable June 30, 2012.
(c) Bought a factory building for $141,000; paid $41,000 in cash and signed a three-year note for the balance.
(d) Paid cash for equipment that cost $100,000.
(e) Purchased supplies for $10,000 on account.
Required:
1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. Use the format shown in the demonstration case on page 71.
2. Record the transaction effects determined in requirement 1 using a journal entry format.
3. Summarize the journal entry effects from requirement 2 using T-accounts.
4. Prepare a classified balance sheet at July 31, 2010.
5. As of July 31, 2010, has the financing for Athletic Performance Company's assets primarily come from liabilities or owner's equity?

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Accounts Payable Building Cash Equipment N. Cade, Capital Notes Payable Supplies