Required information

Skip to question

[The following information applies to the questions displayed below.]

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

Accounts Payable$55,000Buildings540,000Cash94,000Common Stock210,000Equipment156,000Land464,000Notes Payable (long-term)9,000Retained Earnings986,000Supplies6,000

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

1. Issued 3,300 shares of common stock for $330,000 cash.
2. Borrowed $80,000 cash from a local bank, payable in four years.
3. Bought a building for $174,000; paid $70,000 in cash and signed a three-year note for the balance.
4. Paid cash for equipment that cost $94,000.
5. Purchased supplies for $94,000 on account.

1. Summarize the journal entry effects from part 2 using T-accounts. This has 5 separate T accounts to fill out.