Required information CP2-2 (Algo) Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance; Preparing and Interpreting the Balance Sheet [LO 2-1, LO 2-2, LO 2-3, LO 2-4, LO 2-5] [The following information applies to the questions displayed below.] Athletic Performance Company (APC) was incorporated as a private company. The company's accounts included the following at July 1: Accounts Payable Buildings $5,950 172,000 14,900 Cash Common Stock 325,000 Equipment 34,500 Land 134,500 33,750 Notes Payable (long-term) Retained Earnings Supplies 0 8,800 During the month of July, the company had the following activities: a. Issued 4,000 shares of common stock for $400,000 cash. b. Borrowed $54,750 cash from a local bank, payable in two years. c. Bought a building for $176,250; paid $44,250 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $236,000. e. Purchased supplies for $13,500 on account. CP2-2 (Algo) Part 5 5. Prepare a classified balance sheet at July 31. Include Retained Earnings on the balance sheet even though the account has a zero balance. Answer is not complete. ATHLETIC PERFORMANCE COMPANY Balance Sheet At July 31 Assets Current Assets Current Liabilities ✓ Cash $189,400✔ Accounts Payable Supplies 22,300✔ Total Current Liabilities Total Current Assets 211,700 Notes Payable (long-term) Equipment 270,500✔ Buildings 348,250 Total Liabilities Land 134,500 Total Assets $ 964,950 3333 Liabilities Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 19,450 ✔ 19,450 220,500 239,950 725,000 0 725,000 $ 964,950 33 < Prev