Required: 1. Create T-accounts for the following accounts: Cash, Equipment, Note Payable, and Contributed Capital. Beginning balances are zero. For each of the above transactions, record its effects in the appropriate T-accounts. Include referencing and totals for each T- account. Beg. bal. a. End. bal. Beg. bal. End. bal. Cash 0 Assets 71,400 71,400 Note Payable 0 =Liablities Beg. bal. End. bal. Beg. bal. End. bal. Equipment 0 2. Using the balances in the T-accounts, enter the following amounts for the accounting equation. + Shareholders' Equity Contributed Capital 0
Required: 1. Create T-accounts for the following accounts: Cash, Equipment, Note Payable, and Contributed Capital. Beginning balances are zero. For each of the above transactions, record its effects in the appropriate T-accounts. Include referencing and totals for each T- account. Beg. bal. a. End. bal. Beg. bal. End. bal. Cash 0 Assets 71,400 71,400 Note Payable 0 =Liablities Beg. bal. End. bal. Beg. bal. End. bal. Equipment 0 2. Using the balances in the T-accounts, enter the following amounts for the accounting equation. + Shareholders' Equity Contributed Capital 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:Harrigan Service Company, Inc., was incorporated by lan Harrigan and five other managers.
The following activities occurred during the year:
1. Received $71,400 cash from the managers; each was issued 1,190 shares.
2. Purchased equipment for use in the business at a cost of $50,000; one-fourth was paid in
cash and the company signed a note for the balance (due in six months).
3. Signed an agreement with a cleaning service to pay it $690 per week for cleaning the
corporate offices, beginning next week.
4. Ian Harrigan borrowed $19,500 for personal use from a local bank, signing a one-year
note.

Transcribed Image Text:Required:
1. Create T-accounts for the following accounts: Cash, Equipment, Note Payable, and Contributed Capital. Beginning balances are
zero. For each of the above transactions, record its effects in the appropriate T-accounts. Include referencing and totals for each T-
account.
Beg. bal.
a.
End. bal.
Beg. bal.
End. bal.
Cash
0
Assets
71,400
71,400
Note Payable
0
= Liablities
Beg. bal.
End. bal.
Beg. bal.
End. bal.
Equipment
0
2. Using the balances in the T-accounts, enter the following amounts for the accounting equation.
+ Shareholders' Equity
Contributed Capital
0
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