Required information [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: a. Received $83,000 cash from the six investors; each investor was issued 9,700 shares of common stock with a par value of $0.10 per share. b. Purchased equipment for use in the business at a cost of $31,000; 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 $250 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $4,300 in cash and land valued at $28,000 in exchange for 2,300 shares of stock in the company. e. Lent $3,800 to one of the investors, who signed a note due in six months. f. Bennett Griffin borrowed $8,300 for personal use from a local bank, signing a one-year note. Required: 1. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts. Notes Receivable Cash 0 83,000 Beg. Bal. (a) Beg. Bal. End. Bal. 83,000 End. Bal. Equipment Land Beg. Bal. Beg. Bal. End. Bal. End. Bal. Notes Payable Common Stock Beg. Bal. Beg. Bal. 0 End. Bal. End. Bal. Additional Paid-in Capital Beg. Bal. End. Bal. |