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Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Received $72,000 cash from
Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Received $72,000 cash from the managers; each was issued 2,000 shares of common stock. b. Purchased equipment for use in the business at a cost of $15,600; 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 $130 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $27,000 for personal use from a local bank, signing a one-year note. 1. For each of the above transactions, record its effects in the appropriate T-accounts. Assume all beginning balances are zero
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