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:

Consumer Financial Protection Bureau

A U.S. government agency aimed at ensuring consumers are treated fairly by banks, lenders, and other financial institutions, and protecting consumers from unfair, deceptive, or abusive practices.

Financial Crisis

A significant disruption in the flow of funds within financial markets and institutions, leading to a severe decline in asset values and liquidity, often resulting in a recession.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in reduced costs per unit of output.

Chain Retailers

Retail businesses that operate multiple outlets under the same brand or ownership, offering consistent products and services across locations.