Bearing & Brakes Corporation (B&B) was incorporated as a private company. The company 's accounts included the following at June 30:
Accounts payable. $55,000
Buildings. $540,000
Cash. $94,000
Common Stock. $210,000
Equipment. $156,000
Land. $464,000
Notes payable (long-term) $9,000
Retained Earnings. $986,000
Supplies. $6,000
During the month of July, the company had the following activities :
a. Issued 3,300 shares of common stock for $330,000 cash.
b. Borrowed $80,000 cash from a local bank, payable in four years.
c. Bought a building for $174,000; paid $70,000 in cash and signed a three-year note for the balance.
d. Paid cash for equipment that cost $94,000
e. Purchased supplies for $94,000 on account.
1. Analyze transactions (a) -(e) to determine their effects on the accounting equation
Bearing & Brakes Corporation (B&B) was incorporated as a private company. The company 's accounts included the following at June 30:
Accounts payable. $55,000
Buildings. $540,000
Cash. $94,000
Common Stock. $210,000
Equipment. $156,000
Land. $464,000
Notes payable (long-term) $9,000
Retained Earnings. $986,000
Supplies. $6,000
During the month of July, the company had the following activities :
a. Issued 3,300 shares of common stock for $330,000 cash.
b. Borrowed $80,000 cash from a local bank, payable in four years.
c. Bought a building for $174,000; paid $70,000 in cash and signed a three-year note for the balance.
d. Paid cash for equipment that cost $94,000
e. Purchased supplies for $94,000 on account.
1. Analyze transactions (a) -(e) to determine their effects on the accounting equation
Related questions
CP2-2 Recording Transactions (in a Journal and T-Accounts); Preparing and Interpreting the Balance Sheet [LO 2-2, LO 2-3, LO 2-4, LO 2-5]
| [The following information applies to the questions displayed below.] |
| Athletic Performance Company (APC) was incorporated as a private company. The companyâs accounts included the following at July 1: |
| Accounts Payable | $ | 6,700 | |
| Building | 268,000 | ||
| Cash | 10,150 | ||
| Common Stock | 404,000 | ||
| Equipment | 34,750 | ||
| Land | 112,000 | ||
| Notes Payable (long-term) | 22,750 | ||
| Retained Earnings | 0 | ||
| Supplies | 8,550 | ||
| During the month of July, the company had the following activities: |
| During the month of July, the company had the following activities: |
| a. | Issued 3,400 shares of common stock for $340,000 cash. |
| b. | Borrowed $34,250 cash from a local bank, payable in two years. |
| c. | Bought a building for $211,000; paid $55,000 in cash and signed a three-year note for the balance. |
| d. | Paid cash for equipment that cost $127,000. |
| e. | Purchased supplies for $18,500 on account. |
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| 1. | Analyze transactions (a)â(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.)
CP2-2 Part 3
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Data Table
Outdoor Adventure Company | |||
Comparative Balance Sheet | |||
December 31, 2019 and 2018 | |||
2019 | 2018 | ||
Assets | |||
Current Assets: | |||
Cash | $1,398,330 | $14,790 | |
Short-term Investments, net | 29,000 | 0 | |
Accounts Receivable, net | 1,600 | 6,300 | |
Merchandise Inventory | 400 | 0 | |
Office Supplies | 70 | 300 | |
Prepaid Rent | 0 | 2,000 | |
Property, Plant, and Equipment: | |||
Land | 615,000 | 75,000 | |
Building | 944,000 | 94,000 | |
Canoes | 13,920 | 13,920 | |
Office Furniture and Equipment | 140,000 | 0 | |
Accumulated DepreciationâPP&E | (31,920) | (1,740) | |
Total Assets | $3,110,400 | $204,570 | |
Liabilities | |||
Current Liabilities: | |||
Accounts Payable | $6,420 | $4,400 | |
Utilities Payable | 550 | 250 | |
Telephone Payable | 640 | 290 | |
Wages Payable | 3,700 | 1,200 | |
Notes Payable | 18,000 | 0 | |
Interest Payable | 630 | 30 | |
Unearned Revenue | 650 | 450 | |
Long-Term Liabilities: | |||
Notes Payable | 6,720 | 6,720 | |
Mortgage Payable | 725,000 | 0 | |
Bonds Payable | 1,000,000 | 0 | |
Discount on Bonds Payable | (1,140) | 0 | |
Total Liabilities | 1,761,170 | 13,340 | |
Stockholders' Equity | |||
Paid-In Capital: | |||
Preferred Stock | 60,000 | 0 | |
Paid-In Capital in Excess of ParâPreferred | 480,000 | 0 | |
Common Stock | 229,000 | 189,000 | |
Paid-In Capital in Excess of ParâCommon | 240,000 | 0 | |
Retained Earnings | 340,230 | 2,230 | |
Total Stockholders' Equity | 1,349,230 | 191,230 | |
Total Liabilities and Stockholders' Equity | $3,110,400 | $204,570 | |
1. | Theincome statement for 20192019 included the following items: | |
a. | Net income, $ 435 comma 000$435,000 | |
b. | Depreciation expense for the year, $ 30 comma 180$30,180. | |
c. | Amortization on the bonds payable, $ 380$380. | |
2. | There were no disposals of property, plant and equipment duringthe year. All acquisitions of PP&E were for cash except theland, which was acquired by issuing preferred stock. | |
3. | Thecompany issued bonds payable with a face value of $ 1 comma 000 comma 000$1,000,000 , receiving cash of$ 998 comma 480$998,480. | |
4. | Thecompany distributed 8 comma 0008,000 shares of common stock in a stock dividend when the market valuewas$ 9.00$9.00 per share. All other dividends were paid in cash. | |
5. | The common stock, except for the stock dividend, was issued forcash. | |
6. | Thecash receipt from the notes payable in 20192019 is considered a financing activity because it does not relate tooperations. | |
Net Cash Provided by (Used for) Investing Activities | (990,000) |
Cash Flows From Financing Activities: | ||
Cash Receipt from Issuance of Common Stock | ||
Cash Receipt from Issuance of Notes Payable | ||
Cash Receipt from Issuance of Mortgage Payable | ||
Cash Receipt from Issuance of Bonds Payable | ||
Cash Payment of Dividends | ||
Net Cash Provided by (Used for) Financing Activities |
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