Q5

Required information PA2-2 (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) Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included the following at June 30 Accounts Payable $ 25,900 Buildings 118,000 46,500 Common Stock 200,000 Equipment Notes Payable (long-term) 3,700 Retained Earnings Supplies During the month of July, the company had the following activities: Cash Land 123,000 203,000 274,700 13,800 a. Issued 6100 shares of common stock for $610.000 cash b. Borrowed $114.000 cash from a local bank, payable in two years c Bought a building for $272,250; paid $84.250 in cash and signed a three-year note for the balance d. Paid cash for equipment that cost $238.000 e Purchased supplies for $31.250 on account 3. Summarize the journal entry effects from part 2 using T-accounts. Cash Supplies Credit Credit Debit Beginning Balance Dobit Beginning Balance Ending Balance ces Ending Balance Equipment Buildings Credit Debit Beginning Balance Credit Debit Beginning Balance Ending Balance Ending Balance Land Accounts Payable Credit Debit Beginning Balance Credit Debit Beginning Balance Ending Balance Ending Balance Notes Payable Common Stock Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Retained Earnings Credit Debit Beginning Balance Ending Balance