Athletic Performance Company APC was incorporated as a

private company #2671

Athletic Performance Company (APC) was incorporated as a private company. The company’s
accounts included the following at July 1:During the month of July, the company had the
following activities:a. Issued 2,000 shares of common stock for $ 200,000 cash.b. Borrowed $
30,000 cash from a local bank, payable in two years.c. Bought a building for $ 141,000; paid $
41,000 in cash and signed a three- year note for the balance.d. Paid cash for equipment that
cost $ 100,000.e. Purchased supplies for $ 10,000 on account.Required:1. Analyze transactions
(a)–(e) to determine their effects on the accounting equation. Use a spreadsheet format with a
column for each account, enter the July 1 amounts in the first line under the account headings,
and calculate ending balances as shown in Exhibit 2.5.2. Record the transaction effects
determined in requirement 1 using journal entries.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 APC’s investment in assets
primarily come from liabilities or stockholders’ equity?View Solution:
Athletic Performance Company APC was incorporated as a private company

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