The balance sheet for Purrfect Pets,Inc. ,as of June 30,2013,is shown below. During July 2013,stockholders contribute $300,000 cash for additional ownership shares.The company pays $550,000 in cash and borrows $150,000 from a bank to buy some new stores.
a)Show the effects of these transactions on the basic accounting equation.
b)Journalize these transactions.
c)Show the new balance sheet as of July 31,2013,after these transactions have occurred,assuming there was no other July activity.

Question

The balance sheet for Purrfect Pets,Inc. ,as of June 30,2013,is shown below.  During July 2013,stockholders contribute $300,000 cash for additional ownership shares.The company pays $550,000 in cash and borrows $150,000 from a bank to buy some new stores.
a)Show the effects of these transactions on the basic accounting equation.
b)Journalize these transactions.
c)Show the new balance sheet as of July 31,2013,after these transactions have occurred,assuming there was no other July activity.

Quizplus · Accepted Answer

The Answer of The balance sheet for Purrfect Pets,Inc. ,as of June 30,2013,is shown below.  During July 2013,stockholders contribute $300,000 cash for additional ownership shares.The company pays $550,000 in cash and borrows $150,000 from a bank to buy some new stores.
a)Show the effects of these transactions on the basic accounting equation.
b)Journalize these transactions.
c)Show the new balance sheet as of July 31,2013,after these transactions have occurred,assuming there was no other July activity.

The Balance Sheet for Purrfect Pets,Inc