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The Balance Sheet for Toronto Pets Inc

Question 82

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The balance sheet for Toronto Pets Inc.,as of June 30,2011 is shown below.During July,2011,shareholders contribute $300,000 cash for additional ownership shares.The company pays $550,000 in cash and signs $150,000 in promissory notes to buy some new stores.
Show the journal entries and the effects of these transactions on the basic accounting equation.
Show the balance sheet as of July 31,2008,after these transactions have been made,assuming there was no other activities in July 2011.
TORONTO PETS Inc., BAL ANCE SHEET At JUNE 30, 2011 Assets Liabilities Cash $732,600 Accounts Payable $349,200 Accounts Receivable 419,200 Notes Payable 268.900 Inventories 58,400 Total Liabilities 618,100 Property, Plant and  Equipment 118,500 Other Assets 69,400 Shareholders’ Equity  Contributed Capital 662,100 Retained Earnings 117,900 Total Shareholders’ Equity 780,000 Total Assets $1.398.100 Total Liabilities and $1.398.100 Shareholders’ Equity \begin{array}{c}\text {TORONTO PETS Inc.,}\\\text { BAL ANCE SHEET}\\\text { At JUNE 30, 2011}\\\\\begin{array}{lllr}\text { Assets}&&\text { Liabilities}\\\text { Cash } & \$ 732,600 & \text { Accounts Payable } & \$ 349,200 \\\text { Accounts Receivable } & 419,200 & \text { Notes Payable } & \underline{268.900} \\\text { Inventories } & 58,400 & & \\& & \text { Total Liabilities } & \underline{618,100}\\\text { Property, Plant and } \\\text { Equipment } & 118,500 \\\text { Other Assets } & \underline{69,400} &\text { Shareholders' Equity }\\&&\text { Contributed Capital } & 662,100 \\&&\text { Retained Earnings } & \underline{117,900} \\&&\text { Total Shareholders' Equity } & \underline{\underline{780,000}}\\\text { Total Assets } & \$ 1.398 .100 & \text { Total Liabilities and } &\$1.398.100\\&&\text { Shareholders' Equity }\end{array}\end{array}

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