Great Solutions was incorporated as a private company. The
company's accounts included the following at June 30:
Accounts Payable 24,900
Buildings 196,000
Cash 56,750
Common Stock 160,000
Equipment 148,000
Land 201,000
Notes Payable(long-term) 3,050
Retained Earnings 423,500
Supplies 9,700
During the month of July, Great Solutions had the
following activities:
a) Issued 5,600 shares of common stock for $560,000 cash.
b) Borrowed $106,000 cash from a local bank, payable in 2
years.
c) Bought a building for $240,250; paid $90,250 in cash and
signed a 3 year note for the balance.
d) Paid cash for equipment that cost $261,000.
e) Purchased supplies for $33,250 on account.
Summarize the journal entry effects from part 2 using T
accounts:
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