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

Question 188

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The following is a list of account balances for Pick-A-Pet,Inc.,as of June 30,Year 3:
The following is a list of account balances for Pick-A-Pet,Inc.,as of June 30,Year 3:     The company entered into the following transactions during July Year 3.Stockholders contribute $300,000 cash for additional ownership shares and the company pays $550,000 in cash and borrows $150,000 from a bank to buy new equipment.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 company entered into the following transactions during July Year 3.Stockholders contribute $300,000 cash for additional ownership shares and the company pays $550,000 in cash and borrows $150,000 from a bank to buy new equipment.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.

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