The following is a list of account balances for Pick-A-Pet, Inc., as of June 30, Year 3:

Accounts Payable	$	360,000
Accounts Receivable		76,000
Cash		737,100
Common Stock		675,600
Equipment		60,200
Logo and Trademarks		423,400
Long-term Notes Payable		269,800
Retained Earnings		118,800
Software		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:

1. Prepare a classified balance sheet for the company at June 30, Year 3.

2. Show the effects of the July transactions on the basic accounting equation.

3. Prepare the journal entries that would be used to record the transactions.