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 $70,000 cash from the six investors; each investor was issued 8,400 shares of common stock with a par value of $0.10 per share. b. Signed a five-year lease for $150,000 for the right to use a building each year. c. Purchased equipment for use in the business at a cost of $18,000; 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 $120 per week for cleaning the corporate offices next year. e. Received an additional contribution from investors who provided $3,000 in cash and land valued at $15,000 in exchange for 1,000 shares of stock in the company. f. Lent $2,500 to one of the investors, who signed a note due in six months. g. Bennett Griffin borrowed $7,000 for personal use from a local bank, signing a one-year note. Required: 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets = Liabilities + Stockholders' Equity
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 $70,000 cash from the six investors; each investor was issued 8,400 shares of common stock with a par value of $0.10 per share. b. Signed a five-year lease for $150,000 for the right to use a building each year. c. Purchased equipment for use in the business at a cost of $18,000; 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 $120 per week for cleaning the corporate offices next year. e. Received an additional contribution from investors who provided $3,000 in cash and land valued at $15,000 in exchange for 1,000 shares of stock in the company. f. Lent $2,500 to one of the investors, who signed a note due in six months. g. Bennett Griffin borrowed $7,000 for personal use from a local bank, signing a one-year note. Required: 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets = Liabilities + Stockholders' Equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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 $70,000 cash from the six investors; each investor was issued 8,400 shares of common stock with a par
value of $0.10 per share.
b. Signed a five-year lease for $150,000 for the right to use a building each year.
c. Purchased equipment for use in the business at a cost of $18,000; 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 $120 per week for cleaning the corporate offices next year.
e. Received an additional contribution from investors who provided $3,000 in cash and land valued at $15,000 in
exchange for 1,000 shares of stock in the company.
Assets
f. Lent $2,500 to one of the investors, who signed a note due in six months.
g. Bennett Griffin borrowed $7,000 for personal use from a local bank, signing a one-year note.
Required:
2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
= Liabilities
+ Stockholders' Equity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F316033f6-8ac4-43f3-92a1-002916adf7ce%2F5c2ce401-f1bf-46ad-baa1-bee052ed9777%2Fzzex0a8_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 $70,000 cash from the six investors; each investor was issued 8,400 shares of common stock with a par
value of $0.10 per share.
b. Signed a five-year lease for $150,000 for the right to use a building each year.
c. Purchased equipment for use in the business at a cost of $18,000; 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 $120 per week for cleaning the corporate offices next year.
e. Received an additional contribution from investors who provided $3,000 in cash and land valued at $15,000 in
exchange for 1,000 shares of stock in the company.
Assets
f. Lent $2,500 to one of the investors, who signed a note due in six months.
g. Bennett Griffin borrowed $7,000 for personal use from a local bank, signing a one-year note.
Required:
2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
= Liabilities
+ Stockholders' Equity
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