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 $ 28,600 197,000 56,000 230,000 119,000 263,000 6,750 376,850 7,200 During the month of July, the company had the following activities: a. Issued 5,400 shares of common stock for $540,000 cash. b. Borrowed $119,000 cash from a local bank, payable in two years. c. Bought a building for $257,500; paid $90,500 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $222,000. e. Purchased supplies for $33,750 on account. 2. Record the transaction effects determined in part 1 using a journal entry format. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 > Issued 5,400 shares of common stock for $540,000 cash. Record the transaction. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general Journal 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 $ 28,600 197,000 56,000 230,000 119,000 263,000 6,750 376,850 7,200 During the month of July, the company had the following activities: a. Issued 5,400 shares of common stock for $540,000 cash. b. Borrowed $119,000 cash from a local bank, payable in two years. c. Bought a building for $257,500; paid $90,500 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $222,000. e. Purchased supplies for $33,750 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.) Assets + Cash Supplies Land Buildings Equipment 197,000 119,000 Liabilities Accounts Notes Payable Payable 28,600 6,750 Stockholder's Equity Common Retained Stock Earnings 230,000 376,850 Beg. 56,000 7,200 263,000 a. b. C. d. e. End. The following is a list of account balances for Pick-A-Pet, Inc., as of June 30, Year 3: Accounts Payable Accounts Receivable Cash Common Stock Equipment Logo and Trademarks Long-term Notes Payable Retained Earnings Software $ 360,000 76,000 737,100 675,600 60,200 423,400 269,800 118,800 127,500 The company entered into the following transactions during July, Year 3. Stockholders contribute $390,000 cash for additional ownership shares and the company borrows $195,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years. No other transactions took place during July, Year 3. Required: a. Prepare a classified balance sheet for the company at June 30, Year 3. b. Show the effects of the July transactions on the basic accounting equation. c. Prepare the journal entries that would be used to record the transactions. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a classified balance sheet for the company at June 30, Year 3. PICK-A-PETS, INC. Balance Sheet At June 30, Year 3 $ 0 0 0 0 $ 0
