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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
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
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