Question
Bearing & Brakes Corporation (B&B) was incorporated as a private company. The company 's accounts included the following at June 30: Accounts payable. $55,000 Buildings.
Bearing & Brakes Corporation (B&B) was incorporated as a private company. The company 's accounts included the following at June 30:
Accounts payable. $55,000 Buildings. $540,000 Cash. $94,000 Common Stock. $210,000 Equipment. $156,000 Land. $464,000 Notes payable (long-term) $9,000 Retained Earnings. $986,000 Supplies. $6,000
During the month of July, the company had the following activities : a. Issued 3,300 shares of common stock for $330,000 cash. b. Borrowed $80,000 cash from a local bank, payable in four years. c. Bought a building for $174,000; paid $70,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $94,000 e. Purchased supplies for $94,000 on account.
1. Analyze transactions (a) -(e) to determine their effects on the accounting equation
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