[The following information applies to the questions displayed below.] Bearings & Brakes Corporation (B&B) 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 $103,000 700,000 110,000 370,000 188,000 544,000 13,000 1,066,000 10,000 During the month of July, the company had the following activities: a. Issued 4,900 shares of common stock for $490,000 cash. b. Borrowed $160,000 cash from a local bank, payable in four years. c. Bought a building for $206,000; paid $86,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $110,000. e. Purchased supplies for $110,000 on account.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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[The following information applies to the questions displayed below.]
Bearings & Brakes Corporation (B&B) 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
1.
During the month of July, the company had the following activities:
a. Issued 4,900 shares of common stock for $490,000 cash.
b. Borrowed $160,000 cash from a local bank, payable in four years.
c. Bought a building for $206,000; paid $86,000 in cash and signed a three-year note for the balance.
d. Paid cash for equipment that cost $110,000.
e. Purchased supplies for $110,000 on account.
2
Transaction
3
Note: Enter debits before credits.
a
4
Issued 4,900 shares of common stock for $490,000 cash. Record the
transaction.
$103,000
700,000
110,000
370,000
188,000
544,000
13,000
1,066,000
10,000
5
General Journal
2
Debit
Credit
Transcribed Image Text:[The following information applies to the questions displayed below.] Bearings & Brakes Corporation (B&B) 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 1. During the month of July, the company had the following activities: a. Issued 4,900 shares of common stock for $490,000 cash. b. Borrowed $160,000 cash from a local bank, payable in four years. c. Bought a building for $206,000; paid $86,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $110,000. e. Purchased supplies for $110,000 on account. 2 Transaction 3 Note: Enter debits before credits. a 4 Issued 4,900 shares of common stock for $490,000 cash. Record the transaction. $103,000 700,000 110,000 370,000 188,000 544,000 13,000 1,066,000 10,000 5 General Journal 2 Debit Credit
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