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

question 182

Essay

The following is a list of account balances for Pick-A-Pet,Inc. ,as of June 30,Year 3:
$\begin{array}{lr}\text { Accounts Payable } & \$ 349,200 \\\text { Accounts Receivable } & 419200 \\\text { Cash } & 732600 \\\text { Common Stock } & 662,100 \\\text { Equipment } & 58,400 \\\text { Logo and Trademarks } & 421,600 \\\text { Notes Payable } & 268,900 \\\text { Retained Earnings } & 470,100 \\\text { Software } & 118,500\end{array}$ The company entered into the following transactions during July,Year 3.Stockholders contribute $300,000 cash for additional ownership shares and the company borrows $150,000 in cash from a bank to buy new equipment at a later date.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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Definitions:

Dividend Payout Ratio

A financial metric that shows the percentage of a company's earnings paid out to shareholders as dividends.

Profit Margin

A financial metric measuring the amount of net income generated as a percentage of revenue, indicating the efficiency of a company in converting sales into profits.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating the company's profitability.

Sales Increase

A rise in the amount of goods or services sold by a company, indicating a growth in revenue.