Required information

E2-9 (Algo) 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 $87,000 cash from the six investors; each investor was issued 10,100 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 $35,000; 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 $290 per week for cleaning the corporate offices next year.
4. Received an additional contribution from investors who provided $4,700 in cash and land valued at $32,000 in exchange for 2,700 shares of stock in the company.
5. Lent $4,200 to one of the investors, who signed a note due in six months.
6. Bennett Griffin borrowed $8,700 for personal use from a local bank, signing a one-year note.

E2-9 Part 1

Required:

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

E2-9 Part 2

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