[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 $88,000 650,000 105,000 320,000 178,000 519,000 8,000 1,041,000 5,000 During the month of July, the company had the following activities: a. Issued 4,400 shares of common stock for $440,000 cash. b. Borrowed $135,000 cash from a local bank, payable in four years. c. Bought a building for $196,000; paid $81,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $105,000. e. Purchased supplies for $105,000 on account.

[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 $88,000 650,000 105,000 320,000 178,000 519,000 8,000 1,041,000 5,000 During the month of July, the company had the following activities: a. Issued 4,400 shares of common stock for $440,000 cash. b. Borrowed $135,000 cash from a local bank, payable in four years. c. Bought a building for $196,000; paid $81,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $105,000. e. Purchased supplies for $105,000 on account.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 20BEA: The income statement, statement of retained earnings, and balance sheet for Somerville Company are...

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