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E 2 - 9 ( Algo ) Analyzing the Effects of Transactions in T - Accounts LO 2 - 4 [ The following information applies
EAlgo Analyzing the Effects of Transactions in TAccounts LO
The following information applies to the questions displayed below.
Griffin Service Company, Incorporated, was organized by Bennett Griffin and five other investors that is six in total The following activities occurred during the year:
a Received $ cash from the six investors, each investor was issued shares of common stock with a pas value of $ per share.
b Signed a fiveyear lease for $ for the right to use a building each yeac.
c Purchased equipment for use in the business at a cost of $; onefourth was paid in cash and the company signed a note for the balance due in six months
d Signed an agreement with a cleaning service to pay $ per week for cleaning the corporate ofices next year.
e Received an additional contribution from investors who provided $ in cash and land valued as $ in exchange for shares of stock in the company.
Lent $ to one of the investors, who signed a note due in six months.
g Bennett Griffin borrowed $ for personal use from a local bank, signing a oneyear note.
E Part
Required:
For each of the preceding transactions, record the effects of the transaction in the appropriate Taccounts.
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