Recording transactions in journal and t-accounts

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Recording transactions in a journal and T-accounts ; preparing and interpreting the balance sheet. Bearings & Brakes Corporation (B&B) was incorporated as a private company on June 1 2013. The company's accounts included the following at June 30 2013. Accounts Payable- $50,000 Buildings- $500,000 Cash- $90,000 Contributed Capital Equipment- $148,000 Land- $444,000 Notes Payable- $5,000 Retained Earnings- $966,000 Supplies- $9,000. During the month of July, the company had the following activities: a. Issued 6,000 shares of stock for $600,000 cash. b. Borrowed $60,000 cash from a local bank, payable June 30, 2015. c. Bought a building for $166,000; paid $66,000 in cash and signed a three year note for the balance. d. Paid cash for equipment that cost $90,000. e. Purchased supplies for $90,000 on account. Analyze transactions (a)-(e) to determine their effects on the accounting equation. Prepare journal entries to record transactions listed above. 1. Record the transaction effects using a journal entry format. 2. Summarize the journal entry effects using T-accounts. Prepare a classified balance sheet at July 31, 2013. As of July 31, 2013, has the financing for B&B's investment in assets primarily come from liabilities or stockholders' equity?

Reference no: EM131247992

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