CP2-2 Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance; (p. 87)

Athletic Performance Company (APC) was incorporated as a private company. The companys accounts included the following at July 1:

During the month of July, the company had the following activities:

1. Issued 2,000 shares of common stock for $200,000 cash.

2. Borrowed $30,000 cash from a local bank, payable in two years.

3. Bought a building for $141,000; paid $41,000 in cash and signed a three-year note for the balance.

4. Paid cash for equipment that cost $100,000.

5. Purchased supplies for $10,000 on account.

Instruction:

1. Post July 1 balances into T-Accounts

2. Analyze and journalize the transactions from Nos. 1 to 5.

3. Post the amounts from the journal entries to T-Accounts created in No. 1

4. Calculate the ending balances of each account

5. Complete the Trial Balance below by entering the amount in the provided boxes.

-Do not include the dollar sign when entering the amount.

-For an account with debit balance, enter the amount in the first box and * on the 2nd box. For an account with credit balance, enter the amount in the 2nd box and * in the 1st box.

Example:

1. Cash had a debit balance of $150,000

150,000

*

2. Accounts Payable had a credit balance of $10,000

*

10,000

Cash: Supplies: Land: Building: Equipment: Accounts Payable: Notes Payable: Common Stock: Retained Earnings: Total