Required information

Skip to question

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

Deliberate Speed Corporation (DSC) was incorporated as a private company. The companys accounts included the following at June 30:

Accounts Payable$ 24,700Buildings179,000Cash44,000Common Stock165,000Equipment122,000Land264,000Notes Payable (long-term)6,250Retained Earnings424,050Supplies11,000

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

1. Issued 5,700 shares of common stock for $570,000 cash.
2. Borrowed $141,000 cash from a local bank, payable in two years.
3. Bought a building for $244,000; paid $90,750 in cash and signed a three-year note for the balance.
4. Paid cash for equipment that cost $249,000.
5. Purchased supplies for $36,250 on account.

Summarize the journal entry effects from part 2 using T-accounts.