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PB2-2 Recording Transactions (in a Journal and T-Accounts); Preparing a Trial Balance; Preparing and Interpreting the Balance Sheet LO 2-2, 2-3, 2-4, 2-5 Bearings & Brakes Corporation (B&B) was incorporated as a private company. The company's accounts included the following at June 30: $ 50,000 Land $444,000 Accounts Payable Buildings Cash 500,000 5.000 90.000 Notes Payable (long-term) Retained Earnings Supplies 966,000 Common Stock 170,000 9,000 Equipment 148,000 During the month of July, the company had the following activities: a. Issued 6,000 shares of common stock for $600,000 cash. b. Borrowed $60,000 cash from a local bank, payable in four years. c. Bought a building for $166,000; paid $66,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $90,000. e. Purchased supplies for $90,000 on account. Required: 1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. Use the format shown in the Page 92 demonstration case. 2. Record the transaction effects determined in requirement 1 using a journal entry format. 3. Summarize the journal entry effects from requirement 2 using T-accounts. 4. Prepare a trial balance at July 31. 5. Prepare a classified balance sheet at July 31. 6. As of July 31, has the financing for B&B's investment in assets primarily come from liabilities or stockholders' equity

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