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

[The following information applies to the questions displayed below.]

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

1. Received $70,000 cash from the six investors; each investor was issued 8,400 shares of common stock with a par value of $0.10 per share.

2. Purchased equipment for use in the business at a cost of $18,000; 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 $120 per week for cleaning the corporate offices next year.

4. Received an additional contribution from investors who provided $3,000 in cash and land valued at $15,000 in exchange for 1,000 shares of stock in the company.

5. Lent $2,500 to one of the investors, who signed a note due in six months.

6. Bennett Griffin borrowed $7,000 for personal use from a local bank, signing a one-year note.