E2-9 (Algo) Analyzing the Effects of Transactions in T-Accounts LO2-4

Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors. The following activities occurred during the year:

1. Received $78,000 cash from the six investors; each investor was issued 9,200 shares of common stock with a par value of $0.20 per share.
2. Purchased equipment for use in the business at a cost of $26,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months).
3. Signed an agreement with a cleaning service to pay $200 per week for cleaning the corporate offices next year.
4. Received an additional contribution from investors who provided $3,800 in cash and land valued at $23,000 in exchange for 1,800 shares of stock in the company.
5. Lent $3,300 to one of the investors, who signed a note due in six months.
6. Bennett Griffin borrowed $7,800 for personal use from a local bank, signing a one-year note.