PB2-2 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance; Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5]

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Bearings & Brakes Corporation (B&B) was incorporated as a private company. The company's accounts included the following at June 30:

Accounts Payable	$94,000
Buildings	670,000
Cash	107,000
Common Stock	340,000
Equipment	182,000
Land	529,000
Notes Payable (long-term)	10,000
Retained Earnings	1,051,000
Supplies	7,000

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

1. Issued 4,600 shares of common stock for $460,000 cash.
2. Borrowed $145,000 cash from a local bank, payable in four years.
3. Bought a building for $200,000; paid $83,000 in cash and signed a three-year note for the balance.
4. Paid cash for equipment that cost $107,000.

PB2-2 (Algo) Recording Transactions (In a Journal and T-Accounts); Preparing a Trial Balance; Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Bearings & Brakes Corporation (B&B) was Incorporated as a private company. The company's accounts included the following at June 30: Accounts Payable Buildings Cash Common Stock Land Equipment Notes Payable (long-term) $94,000 670,000 107,000 340,000 182,000 529,000 10,000 1,051,000 Retained Earnings Supplies 7,000 During the month of July, the company had the following activities: a. Issued 4,600 shares of common stock for $460,000 cash. b. Borrowed $145,000 cash from a local bank, payable in four years. c. Bought a building for $200,000; paid $83,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $107,000. e. Purchased supplies for $107,000 on account. PB2-2 (Algo) Part 3 3. Summarize the journal entry effects from part 2 using T-accounts. Cash Supplies Debit Credit Debit Credit Beginning Balance 107,000 Beginning Balance a. 480,000 83,000 c e. 7,000 107,000 b. 145,000 107,000 d. Ending Balance 522,000 Ending Balance 114,000 Equipment Debit Credit Beginning Balance d. 182,000 107,000 Buildings Debit Credit Beginning Balance C. 670,000 200,000 Ending Balance 289,000 Ending Balance 870,000 Land Accounts Payable Debit Credit Debit Beginning Balance 529,000 Beginning Balance Ending Balance 529,000 Ending Balance Notes Payable Common Stock Debit Credit Debit Beginning Balance 10,000 145,000 Beginning Balance 145,000 b. 117,000 c. Ending Palaron 107 000 Credit 94,000 107,000 e 201,000 Credit 340,000 480,000 a. Ending Pala 800000