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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 Buildings Cash Common Stock

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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 Buildings Cash Common Stock Equipment Land Notes Payable (long-term) Retained Earnings Supplies $ 24,000 150,000 56,250 140,000 161,000 219,000 6,950 431,600 16,300 During the month of July, the company had the following activities: a. Issued 6,600 shares of common stock for $660,000 cash. b. Borrowed $178,000 cash from a local bank, payable in two years. c. Bought a building for $235,000; paid $84,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $245,000. e. Purchased supplies for $51,250 on account. 1. Analyze transpctions (a)-(@) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) 5 Assets Cash Supplies Land Bulldings Equipment 150,000 161,000 Liabilities Accounts Notes Payable Payablo 24,000 6.950 Beginning Balance 56,250 16,300 219,000 = + + b. + C + d 0. Ending Balance 56,250 16,300 150,000 161,000 219,000 24,000 6,950 - Record the transaction effects determined in part 1 using a journal entry format. (If no entry is required or a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Issued 6,600 shares of common stock for $660,000 cash. Record the transaction. Note: Enter debits before credits Transaction General Journal Debit Credit a 3. Summarize the journal entry effects from part 2 using T-accounts. Casa Supplies Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Equipment Buildings Credit Debit Debit Beginning Balance Beginning Balance Ending Balance Ending Balance Land + Accounts Payable Debit Credit Debit Cr Beginning Balance Beginning Balance Endina Balance Endina Balance 4. Prepare a trial balance at July 31. DELIBERATE SPEED CORPORATION Trin Balance Debit Credit + Totals $ 0 $ 5. Prepare a classified balance sheet at July 31. DELIBERATE SPEED CORPORATION Balance Sheet 0 $ 6. As of July 31, has the financing for Deliberate Speed Corporation's (DSC's) investment in assets primarily come from liabilities or stockholders' equity? Multiple Choice Liabilities Stockholders' Equity

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