Required information E2-9 (Algo) Analyzing the Effects of Transactions in T-Accounts LO2-4 [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 $80,000 cash from the six investors; each investor was issued 9,400 shares of common stock with a par value of $0.10 per share. b. Signed a five-year lease for $165,000 for the right to use a building each year. c. Purchased equipment for use in the business at a cost of $28,000; 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 $220 per week for cleaning the corporate offices next year. e. Received an additional contribution from investors who provided $4,000 in cash and land valued at $25,000 in exchange for 2,000 shares of stock in the company. f. Lent $3,500 to one of the investors, who signed a note due in six months. g. Bennett Griffin borrowed $8,000 for personal use from a local bank, signing a one-year note. E2-9 Part 2 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets Liabilities + Stockholders' Equity A
Required information E2-9 (Algo) Analyzing the Effects of Transactions in T-Accounts LO2-4 [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 $80,000 cash from the six investors; each investor was issued 9,400 shares of common stock with a par value of $0.10 per share. b. Signed a five-year lease for $165,000 for the right to use a building each year. c. Purchased equipment for use in the business at a cost of $28,000; 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 $220 per week for cleaning the corporate offices next year. e. Received an additional contribution from investors who provided $4,000 in cash and land valued at $25,000 in exchange for 2,000 shares of stock in the company. f. Lent $3,500 to one of the investors, who signed a note due in six months. g. Bennett Griffin borrowed $8,000 for personal use from a local bank, signing a one-year note. E2-9 Part 2 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets Liabilities + Stockholders' Equity A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
E2-9 (Algo) Analyzing the Effects of Transactions in T-Accounts LO2-4
[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 $80,000 cash from the six investors; each investor was issued 9,400 shares of common stock with a par
value of $0.10 per share.
b. Signed a five-year lease for $165,000 for the right to use a building each year.
c. Purchased equipment for use in the business at a cost of $28,000; 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 $220 per week for cleaning the corporate offices next year.
e. Received an additional contribution from investors who provided $4,000 in cash and land valued at $25,000 in
exchange for 2,000 shares of stock in the company.
f. Lent $3,500 to one of the investors, who signed a note due in six months.
g. Bennett Griffin borrowed $8,000 for personal use from a local bank, signing a one-year note.
E2-9 Part 2
Assets
2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
Liabilities
+
Stockholders' Equity
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbfd95f9b-95c3-4db4-b976-a39511e44c8d%2F82e51f82-d80d-4c2d-a052-9af9432b553f%2Fx2sogir_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
E2-9 (Algo) Analyzing the Effects of Transactions in T-Accounts LO2-4
[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 $80,000 cash from the six investors; each investor was issued 9,400 shares of common stock with a par
value of $0.10 per share.
b. Signed a five-year lease for $165,000 for the right to use a building each year.
c. Purchased equipment for use in the business at a cost of $28,000; 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 $220 per week for cleaning the corporate offices next year.
e. Received an additional contribution from investors who provided $4,000 in cash and land valued at $25,000 in
exchange for 2,000 shares of stock in the company.
f. Lent $3,500 to one of the investors, who signed a note due in six months.
g. Bennett Griffin borrowed $8,000 for personal use from a local bank, signing a one-year note.
E2-9 Part 2
Assets
2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
Liabilities
+
Stockholders' Equity
4
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