Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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:
- Received $89,000 cash from the six investors; each investor was issued 10,300 shares of common stock with a par value of $0.10 per share.
- Purchased equipment for use in the business at a cost of $37,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months).
- Signed an agreement with a cleaning service to pay $310 per week for cleaning the corporate offices next year.
- Received an additional contribution from investors who provided $4,900 in cash and land valued at $34,000 in exchange for 2,900 shares of stock in the company.
- Lent $4,400 to one of the investors, who signed a note due in six months.
- Bennett Griffin borrowed $8,900 for personal use from a local bank, signing a one-year note.
E2-9 Part 2
2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
Assets_______ = Liabilities ________ + Stockholders' Equity___________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started