Required information PB2-2 Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance; Preparing and Interpreting the Balance Sheet [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 Equipment Land Notes Payable (long-term) Retained Earnings Supplies $ 53,000 510,000 91,000 180,000 150,000 449,000 6,000 971,000 10,000 During the month of July, the company had the following activities: a. Issued 3,000 shares of common stock for $300,000 cash. b. Borrowed $65,000 cash from a local bank, payable in four years. c. Bought a building for $168,000; paid $67,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $91,000. e Purchased supplies for $91,000 on account. PB2-2 Part 3 3. Summarize the journal entry effects from part 2 using T-accounts. Supplies 10,000 Beg. Bal. Beg. Bal. Cash 91,000 300,000 65,000 a b. e. 91,000 End. Bal. 456,000 End. Bal. 101,000 Equipment Beg. Bal. Beg. Bal. d. Buildings 510,000 168,000 91,000 C. End. Bal. 91,000 End. Bal 678,000 Accounts Payable Land 449,000 Beg. Bal. Beg. Bal. End. Bal. 449,000 End. Bal. Notes Payable Common Stock Beg. Bal. Beg. Bal. End. Bal. End. Bal. Retained Earnings Beg. Bal. End. Bal. PB2-2 Part 4 4. Prepare a trial balance at July 31. Credit BEARINGS & BRAKES CORPORATION Trial Balance At July 31 Debit Accounts Payable $ 53,000 Buildings 510,000 Cash Common Stock 180,000 Equipment Land $ 449,000 Notes Payable (long-term) Retained Earnings Supplies 91,000 150,000 6,000 971,000 10,000 Totals $ 1,192,000 1,228,000 PB2-2 Part 5 5. Prepare a classified balance sheet at July 31. BEARINGS & BRAKES CORPORATION Balance Sheet 0 $ 0 $ 0