Debit Additional Paid-in Capital Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Hello, I need help with these T-Charts and an explanation of the debits and credits.
Transcribed Image Text:Debit
Beginning Balance
Ending Balance
Additional Paid-in Capital
0
Credit
![Required information
[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 $72,000 cash from the six investors; each investor was issued 8,600 shares of common stock with a par
value of $0.10 per share.
b. Signed a five-year lease for $153,000 for the right to use a building each year.
c. Purchased equipment for use in the business at a cost of $20,000; 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 $140 per week for cleaning the corporate offices next year.
e. Received an additional contribution from investors who provided $3,200 in cash and land valued at $17,000 in
exchange for 1,200 shares of stock in the company.
f. Lent $2,700 to one of the investors, who signed a note due in six months.
g. Bennett Griffin borrowed $7,200 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.
Debit
Beginning Balance
(a)
Ending Balance
Debit
Beginning Balance
(c)
Ending Balance
Beginning Balance
Ending Balance
Debit
Beginning Balance
Cash
Ending Balance
0
72,000
67,000
Equipment
0
20,000
Operating Lease Right-of-Use Assets
Debit
Credit
20,000
0
153,000
153,000
5,000 (c)
Credit
Long-term Lease Liabilities
0
Credit
Credit
Beginning Balance
Ending Balance
Ending Balance
Debit
Beginning Balance
Ending Balance
Debit
Beginning Balance
Ending Balance
Debit
Debit
Beginning Balance
Notes Receivable
0
Land
0
Notes Payable
Common Stock
0
0
Credit
Credit
Credit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5b66953-d8c0-491f-82b9-53ac9723ea16%2Fbf8cec7c-6aa4-402e-a3ca-3ac5a7e78b28%2Ft6cv6ix_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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 $72,000 cash from the six investors; each investor was issued 8,600 shares of common stock with a par
value of $0.10 per share.
b. Signed a five-year lease for $153,000 for the right to use a building each year.
c. Purchased equipment for use in the business at a cost of $20,000; 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 $140 per week for cleaning the corporate offices next year.
e. Received an additional contribution from investors who provided $3,200 in cash and land valued at $17,000 in
exchange for 1,200 shares of stock in the company.
f. Lent $2,700 to one of the investors, who signed a note due in six months.
g. Bennett Griffin borrowed $7,200 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.
Debit
Beginning Balance
(a)
Ending Balance
Debit
Beginning Balance
(c)
Ending Balance
Beginning Balance
Ending Balance
Debit
Beginning Balance
Cash
Ending Balance
0
72,000
67,000
Equipment
0
20,000
Operating Lease Right-of-Use Assets
Debit
Credit
20,000
0
153,000
153,000
5,000 (c)
Credit
Long-term Lease Liabilities
0
Credit
Credit
Beginning Balance
Ending Balance
Ending Balance
Debit
Beginning Balance
Ending Balance
Debit
Beginning Balance
Ending Balance
Debit
Debit
Beginning Balance
Notes Receivable
0
Land
0
Notes Payable
Common Stock
0
0
Credit
Credit
Credit
Credit
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