Textbook Problem:

CP2-2 Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance;(p. 87)

Athletic Performance Company (APC) was incorporated as a private company. The company's accounts included the following at July 1:

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

1. Issued 2,000 shares of common stock for $200,000 cash.
2. Borrowed $30,000 cash from a local bank, payable in two years.
3. Bought a building for $141,000; paid $41,000 in cash and signed a three-year note for the balance.
4. Paid cash for equipment that cost $100,000.
5. Purchased supplies for $10,000 on account.

Instruction:

1. Post July 1 balances into T-Accounts
2. Analyze and journalize the transactions from Nos. 1 to 5.
3. Post the amounts from the journal entries to T-Accounts created in No. 1
4. Calculate the ending balances of each account
5. Complete the Trial Balance below by entering the amount in the provided boxes.
   1. Do not include the dollar sign when entering the amount.
   2. For an account with debit balance, enter the amount in the first box and * on the 2^nd box. For an account with credit balance, enter the amount in the 2^nd box and * in the 1^st box.

Example:

1. Cash had a debit balance of $150,000

150,000

*

2. Accounts Payable had a credit balance of $10,000

*

10,000