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Required information [The following information applies to the questions displayed below.] Deliberate Speed Corporation (DSC) was incorporated as a private company. The company's accounts included
Required information [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 Buildings Cash Common Stock. Equipment Land Notes Payable (long-term) Retained Earnings Supplies $ 27,800 156,000 58,250 155,000 138,000 262,000 3,250 440, 100 11,900 During the month of July, the company had the following activities: a. Issued 5,500 shares of common stock for $550,000 cash. b. Borrowed $135,000 cash from a local bank, payable in two years. c. Bought a building for $233,000; paid $90,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $225,000. e. Purchased supplies for $54,250 on account. Required: 1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) Cash Beginning Balance 58,250 a b. C d. e Assets Supplies Buildings Equipment 11,900 156,000 Land 138,000 262,000= Liabilities + Stockholders' Equity Accounts Payable Notes Payable Common Retained Stock Earnings 27,800 3,250 + 155,000 440,100 Ending Balance 58,250 11,900 156,000 138,000 262,000 27,800 3,250 + 155,000 440,100
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