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Deliberate Speed Corporation (DSC) was incorporated as a private company. The company’s accounts included the following at...

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Accounting

Deliberate SpeedCorporation (DSC) was incorporated as a private company. Thecompany’s accounts included the following at June 30:

   

  
  Accounts Payable$28,400
  Buildings114,000
  Cash38,000
  Common Stock215,000
  Equipment162,500
  Land286,000
  Notes Payable (long-term)2,400
  Retained Earnings370,900

Supplies

16,200
During the month of July, the company had the followingactivities:
a.Issued 3,900shares of common stock for $390,000 cash.
b.Borrowed$110,000 cash from a local bank, payable in two years.
c.Bought abuilding for $251,750; paid $92,750 in cash and signed a three-yearnote for the balance.
d.Paid cash forequipment that cost $243,000.
e.Purchasedsupplies for $30,750 on account.

Summarize the journal entry effects from part 2 usingT-accounts.

CashSupplies
Beg. Bal.Beg. Bal.
a.390,000
End. Bal.390,000End. Bal.
EquipmentBuildings
Beg. Bal.Beg. Bal.
End. Bal.End. Bal.
LandAccountsPayable
Beg. Bal.Beg. Bal.
End. Bal.End. Bal.
NotesPayableCommonStock
Beg. Bal.Beg. Bal.
End. Bal.End. Bal.
RetainedEarnings
Beg. Bal.
End. Bal.

Answer & Explanation Solved by verified expert
4.2 Ratings (771 Votes)

  • T Accounts completed, as asked:

Cash

Beg. Bal.

$          38,000.00

c.

$                        92,750.00

a.

$        390,000.00

d.

$                     243,000.00

b.

$        110,000.00

End. Bal.

$        202,250.00

Debit balance

Equipment

Beg. Bal.

$        162,500.00

d.

$        243,000.00

End. Bal.

$        405,500.00

Debit Balance

Land

Beg. Bal.

$        286,000.00

End. Bal.

$        286,000.00

Debit Balance

Notes Payable

Beg. Bal.

$                          2,400.00

b.

$                     110,000.00

c.

$                     159,000.00

Credit Balance

End. Bal.

$                     271,400.00

Retained Earnings

Beg. Bal.

$                     370,900.00

Credit Balance

End. Bal.

$                     370,900.00

Supplies

Beg. Bal.

$       16,200.00

e.

$       30,750.00

End. Bal.

$       46,950.00

Debit Balance

Buildings

Beg. Bal.

$     114,000.00

c.

$     251,750.00

End. Bal.

$     365,750.00

Debit Balance

Accounts Payable

Beg. Bal.

$        28,400.00

e.

$        30,750.00

Credit Balance

End. Bal.

$        59,150.00

Common Stock

Beg. Bal.

$      215,000.00

a.

$      390,000.00

Credit balance

End. Bal.

$      605,000.00

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