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Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included the following at June 30: Accounts Payable $ 23,000 Land
Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included the following at June 30: Accounts Payable $ 23,000 Land $213,000 Factory Building Cash 103,900 29,900 Notes Payable (long-term) Contributed Capital 193,000 Retained Earnings Supplies 4,600 265,500 8,300 Equipment 131,000 During the month of July, the company had the following transactions: a. Issued 3,740 shares for $374,000 cash. b. Borrowed $116,000 cash from a local bank, payable in two years. c Bought a factory building for $208,000; paid $95,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $226,000. e. Purchased supplies for $33,900 on account. 4. Prepare a classified balance sheet at July 31. DELIBERATE SPEED CORPORATION Balance Sheet At July 31 Assets Current assets Cash Liabilities Current liabilities Total current assets 0 Total current liabilities 0 Total liabilities 0 Shareholders' equity Total shareholders' equity 0 Total assets $ 0 Total liabilities & shareholders' equity S 0 5. As of July 31, has the financing for DSC's investment in assets primarily come from liabilities or from shareholders' equity?
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