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  • Bearings Brakes Corporation B B Was Incorporated As A

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    B&B was incorporated as a private company in June. In July, the company issued stock for $600,000, borrowed $60,000 from a bank, bought a building for $166,000 by paying $66,000 in cash and financing the rest, purchased $90,000 of equipment with cash, and bought $90,000 of supplies on account. The financing for B&B's assets came primarily from stockholders' equity through the stock issuance and liabilities through the bank loan and building financing.

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    Bearings Brakes Corporation b b Was Incorporated as A

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    B&B was incorporated as a private company in June. In July, the company issued stock for $600,000, borrowed $60,000 from a bank, bought a building for $166,000 by paying $66,000 in cash and financing the rest, purchased $90,000 of equipment with cash, and bought $90,000 of supplies on account. The financing for B&B's assets came primarily from stockholders' equity through the stock issuance and liabilities through the bank loan and building financing.

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    © All Rights Reserved
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    32 views1 page

    Bearings Brakes Corporation B B Was Incorporated As A

    Uploaded by

    Taimur Technologist
    B&B was incorporated as a private company in June. In July, the company issued stock for $600,000, borrowed $60,000 from a bank, bought a building for $166,000 by paying $66,000 in cash and financing the rest, purchased $90,000 of equipment with cash, and bought $90,000 of supplies on account. The financing for B&B's assets came primarily from stockholders' equity through the stock issuance and liabilities through the bank loan and building financing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    Bearings Brakes Corporation B B was incorporated as a

    #2676
    Bearings & Brakes Corporation (B& B) was incorporated as a private company. The company’s
    accounts included the following at June 30:During the month of July, the company had the
    following activities: a. Issued 6,000 shares of common stock for $ 600,000 cash. b. Borrowed $
    60,000 cash from a local bank, payable in four years. 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.Required:1. Analyze transactions
    (a)–(e) to determine their effects on the accounting equation. Use the format shown in the
    demonstration case on page 69.2. Record the transaction effects determined in requirement 1
    using a journal entry format.3. Summarize the journal entry effects from requirement 2 using T-
    accounts.4. Prepare a trial balance at July 31.5. Prepare a classified balance sheet at July 31.6.
    As of July 31, has the financing for B& B’s investment in assets primarily come from liabilities or
    stockholders’ equity?View Solution:
    Bearings Brakes Corporation B B was incorporated as a

    ANSWER
    http://paperinstant.com/downloads/bearings-brakes-corporation-b-b-was-incorporated-as-a/

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