E2-9 Analyzing the Effects of Transactions in T-AccountsLO2-4Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors (that is, six in total). Thefollowing activities occurred during the year:a. Received $70,000 cash from the six investors; each investor was issued 8,400 shares of common stock with a parvalue of $0.10 per share.b. Purchased equipment for use in the business at a cost of $18,000; one-fourth was paid in cash and the companysigned a note for the balance (due in six months).c. Signed an agreement with a cleaning service to pay $120 per week for cleaning the corporate offices next year.d. Received an additional contribution from investors who provided $3,000 in cash and land valued at $15,000 inexchange for 1,000 shares of stock in the company.e. Lent $2,500 to one of the investors, who signed a note due in six months.f. Bennett Griffin borrowed $7,000 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, CommonStock, and Additional Paid-in Capital. Beginning balances are $0. For each of the transactions (a) through (f), recordthe effects of the transaction in the appropriate T-accounts. Include good referencing and totals for each T-account.2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:Assets $Liabilities $+ Stockholders' Equity $.

Accounting equation represents that the asses is equal to the sum of liabilities and stockholders'…

Answered: Griffin Service Company, Inc., was…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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Nicole organized a new corporation. The corporation began business on April 1 of year 1. She made the following expenditures associated with getting the corporation started: (Leave no answer blank. Enter zero if applicable.) Expense Date Amount Attorney fees for articles of incorporation February 10 $ 32,000 March 1–March 30 wages March 30 4,500 March 1–March 30 rent March 30 2,000 Stock issuance costs April 1 20,000 April 1–May 30 wages May 30 12,000 What would be the total allowable organizational expenditures if Nicole started a sole proprietorship instead of a corporation?
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Exploit Media, LLC, has three members: WACS Partners, Elyse O’Reilly, and Encounter Newspaper, LLC. On January 1, 20Y2, the three members had equity of $218,800, $36,100, and $145,000, respectively. WACS Partners contributed an additional $53,500 to Exploit Media, LLC, on June 1, 20Y2. Elyse O’Reilly received an annual salary allowance of $53,700 during 20Y2. The members’ equity accounts are also credited with 10% interest on each member’s January 1 capital balance. Any remaining income is to be shared in the ratio of 4:3:3 among the three members. The revenues, expenses, and net income for Exploit Media, LLC, for 20Y2 were $1,203,700, 866,400 and $337,300 respectively. Amounts equal to the salary and interest allowances were withdrawn by the members. Required: a. Determine the division of income among the three members. If an amount box does not require an entry, leave it blank. b. Prepare the journal entry to close the revenues, expenses, and withdrawals to the individual…

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Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors (that is, six in total). The following activities occurred during the year: