E2-8 (Algo) Analyzing the Effects of Transactions in T-Accounts [ LO 2-2, LO 2-3, LO 2-5] [The following information applies to the questions displayed below] Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Recelved $56,000 cash from the managers; each was issued 1,600 shares of common stock. b. Purchased equipment for use in the business at a cost of $10,800; one-fourth was pald 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 $90 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $19,000 for personal use from a local bank, signing a one-year note. E2-8 (Algo) Part 1 Required: 1. For each of the above transactions, record its effects in the appropriate T-accounts. Assume all beginning balances are zero. 1. For each of the above transactions, record its effects in the appropriate T-accounts. Assume all beginning balances Required information E2-8 (Algo) Analyzing the Effects of Transactions in T-Accounts [LO 2-2, LO 2-3, LO 2-5] [The following information applies to the questions displayed below] Mulkeen Service Company. Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Recelved $56,000 cash from the managers; each was issued 1,600 shares of common stock. b. Purchased equipment for use in the business at a cost of $10,800; 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 $90 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $19,000 for personal use from a local bank, signing a one-year note. E2-8 (Algo) Part 3 3-0. What will be your response to transaction (c)? The agreement in ( q involves no exchange or receipt of cash, goods, or services and thus is not yet a transaction. The agreement in ( G involves exchange of cash and services and thus is a transoction. 3-b. What will be your response to transaction (d)? Required information E2-8 (Algo) Analyzing the Effects of Transactions in T-Accounts [LO 2-2, LO 2-3, LO 2-5] [The following information applies to the questions displayed below.] Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Recelved $56,000 cash from the managers; each was issued 1,600 shares of common stock. b. Purchased equipment for use in the business at a cost of $10,800; 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 $90 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $19,000 for personal use from a local bank, signing a one-year note. =2-8 (Algo) Part 2 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation
