The following is a list of account balances for Pick-A-Pet,Inc. ,as of June 30,Year 3:
$\begin{array}{lr}
\text { Accounts Payable } & \$ 349,200 \
\text { Accounts Receivable } & 419200 \
\text { Cash } & 732600 \
\text { Common Stock } & 662,100 \
\text { Equipment } & 58,400 \
\text { Logo and Trademarks } & 421,600 \
\text { Notes Payable } & 268,900 \
\text { Retained Earnings } & 470,100 \
\text { Software } & 118,500
\end{array}$ The company entered into the following transactions during July,Year 3.Stockholders contribute $300,000 cash for additional ownership shares and the company borrows $150,000 in cash from a bank to buy new equipment at a later date.No other transactions took place during July,Year 3.
Required:
Part a.Prepare a classified balance sheet for the company at June 30,Year 3.
Part b.Show the effects of the July transactions on the basic accounting equation.
Part c.Prepare the journal entries that would be used to record the transactions.

Question

The following is a list of account balances for Pick-A-Pet,Inc. ,as of June 30,Year 3:
 $\begin{array}{lr}
\text { Accounts Payable } & \$ 349,200 \
\text { Accounts Receivable } & 419200 \
\text { Cash } & 732600 \
\text { Common Stock } & 662,100 \
\text { Equipment } & 58,400 \
\text { Logo and Trademarks } & 421,600 \
\text { Notes Payable } & 268,900 \
\text { Retained Earnings } & 470,100 \
\text { Software } & 118,500
\end{array}$ The company entered into the following transactions during July,Year 3.Stockholders contribute $300,000 cash for additional ownership shares and the company borrows $150,000 in cash from a bank to buy new equipment at a later date.No other transactions took place during July,Year 3.
Required:
Part a.Prepare a classified balance sheet for the company at June 30,Year 3.
Part b.Show the effects of the July transactions on the basic accounting equation.
Part c.Prepare the journal entries that would be used to record the transactions.

Quizplus · Accepted Answer

The Answer of The following is a list of account balances for Pick-A-Pet,Inc. ,as of June 30,Year 3:
 $\begin{array}{lr}
\text { Accounts Payable } & \$ 349,200 \
\text { Accounts Receivable } & 419200 \
\text { Cash } & 732600 \
\text { Common Stock } & 662,100 \
\text { Equipment } & 58,400 \
\text { Logo and Trademarks } & 421,600 \
\text { Notes Payable } & 268,900 \
\text { Retained Earnings } & 470,100 \
\text { Software } & 118,500
\end{array}$ The company entered into the following transactions during July,Year 3.Stockholders contribute $300,000 cash for additional ownership shares and the company borrows $150,000 in cash from a bank to buy new equipment at a later date.No other transactions took place during July,Year 3.
Required:
Part a.Prepare a classified balance sheet for the company at June 30,Year 3.
Part b.Show the effects of the July transactions on the basic accounting equation.
Part c.Prepare the journal entries that would be used to record the transactions.

The Following Is a List of Account Balances for Pick-A-Pet,Inc