Required information

E$2-9($Algo$)$ Analyzing the Effects of Transactions in T$-$Accounts LO$2-4$

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

Griffin Service Company, Incorporated, was organized by Bennett Griffin and five other investors $($that is$,$ six in total$).$ The following activities occurred during the year:

a$.$ Received $$78,000$ cash from the six investors; each investor was issued $9,200$ shares of common stock with a par value of $$0\mathrm{.}20$ per share.

b$.$ Signed a five$-$year lease for $$162,000$ for the right to use a building each year.

c$.$ 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$).$

d$.$ Signed an agreement with a cleaning service to pay $$200$ per week for cleaning the corporate offices next year.

e$.$ 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.

f$.$ Lent $$3,300$ to one of the investors, who signed a note due in six months.

g$.$ Bennett Griffin borrowed $$7,800$ for personal use from a local bank, signing a one$-$year note.

E$2-9$ Part $1$

Required:

For each of the preceding transactions, record the effects of the transaction in the appropriate T$-$accounts.

$\backslash$table$[[$Cash$,],[$Debit$,,$Credit$],[$Beginning Balance,$0,,],[($a$),,,]]$

$\backslash$table$[[$Notes Receivable$],[$Debit$,,$Credit,$],[$Beginning Balance,$0,,],[,,,]]$

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$4$

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Required:

For each of the preceding transactions, record the effects of the transaction in the appropriate T$-$accounts.

Me

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H$$ll

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$\backslash$table$[[,,,],[,,,],[,,,],[,,,],[$Ending Balance,,,$],[,,,]]$

Long$-$term Lease Liabilities

$\backslash$table$[[$Debit$,$Credit,$],[$Beginning Balance,,,$0],[,,,,],[,,,,],[,,,,],[$Ending Balance,,,,$]]$

$\backslash$table$[[$Additional Paid$-$in Capital,$],[$Debit$,$Credit$],[$Beginning Balance,,,$],[,,,],[,,,],[,,,],[,,,]]$

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$$

Required information

E$2-9($Algo$)$ Analyzing the Effects of Transactions in T$-$Accounts LO$2-4$

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

Griffin Service Company, Incorporated, was organized by Bennett Griffin and five other investors $($that is$,$ six in total$).$ The following activities occurred during the year:

a$.$ Received $$78,000$ cash from the six investors; each investor was issued $9,200$ shares of common stock with a par value of $$0\mathrm{.}20$ per share.

b$.$ Signed a five$-$year lease for $$162,000$ for the right to use a building each year.

c$.$ 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$).$

d$.$ Signed an agreement with a cleaning service to pay $$200$ per week for cleaning the corporate offices next year.

e$.$ 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.

f$.$ Lent $$3,300$ to one of the investors, who signed a note due in six months.

g$.$ Bennett Griffin borrowed $$7,800$ for personal use from a local bank, signing a one$-$year note.

E$2-9$ Part $2$

$2.$ Using the balances in the T$-$accounts, fill in the following amounts for the accounting equation:

Assets

$=$ Liabilities

Stockholders' Equity

Me

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