Chapter 2 Homework

Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Received $70,000 cash from the managers, each was issued 2,000 shares of common stock. b. Purchased equipment for use in the business at a cost of $15,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months). c Signed an agreement with a cleaning service to pay it $125 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $26,000 for personal use from a local bank signing a one-year note. Required: 1. For each of the above transactions, record its effects in the approperate T-accounts. Assume all beginning balances are zero