Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Required information [The following information applies to the questions displayed below.) Granger Service Company, Inc., was organized by Ted Granger and five other investors. The

image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below.) Granger Service Company, Inc., was organized by Ted Granger and five other investors. The following activities occurred during the year: a. Received $77,000 total cash from the six investors;leach investor was issued 9,100 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 $25,000; 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 $190 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $3,700 in cash and land valued at $22,000 in exchange for 1700 shares of stock in the company. e. Lent $3,200 to one of the investors who signed a note due in six months. 1. Ted Granger borrowed $7,700 for personal use from a local bank, signing a one-year note. Required: 1. Create T-accounts for the following accounts: Cash, Notes Receivable, Equipment, Land, Notes Payable, Common Stock, and Additional Paid in Capital. Beginning balances are $0. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts. Include good referencing for each T-account. Cash Beg Bal 0 Beg Bal Notes Receivable 0 Beg. Bal. Cash 0 Beg. Bal. Notes Receivable 0 End. Bal. End. Bal. Beg. Bal. Equipment 0 Beg. Bal. Land End. Bal. 0 End. Bal. Beg. Bal Notes Payable 0 Beg. Bal. Common Stock End. Bal. 0 Additional Paid-in Capital End. Bal. Beg. Bal. 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What function is used for the parity disks

Answered: 1 week ago