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Required information. E2-8 (Algo) Analyzing the Effects of Transactions in T-Accounts [LO 2-2, LO 2-3, LO 2-5] [The following information applies to the questions displayed below.] Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Received $44,000 cash from the managers; each was issued 1,200 shares of common stock. b. Purchased equipment for use in the business at a cost of $7,200; one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Signed an agreement with a cleaning service to pay it $60 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $13,000 for personal use from a local bank, signing a one-year note. E2-8 (Algo) Part 1 Required: 1. For each of the above transactions, record its effects in the appropriate T-accounts. Assume all beginning balances are zero. Debit Beginning Balance Ending Balance Cash 0 44,000 44,000 Credit Debit Beginning Balance Ending Balance Equipment Credit

Required information. E2-8 (Algo) Analyzing the Effects of Transactions in T-Accounts [LO 2-2, LO 2-3, LO 2-5] [The following information applies to the questions displayed below.] Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Received $44,000 cash from the managers; each was issued 1,200 shares of common stock. b. Purchased equipment for use in the business at a cost of $7,200; one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Signed an agreement with a cleaning service to pay it $60 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $13,000 for personal use from a local bank, signing a one-year note. E2-8 (Algo) Part 1 Required: 1. For each of the above transactions, record its effects in the appropriate T-accounts. Assume all beginning balances are zero. Debit Beginning Balance Ending Balance Cash 0 44,000 44,000 Credit Debit Beginning Balance Ending Balance Equipment Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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! Required information E2-8 (Algo) Analyzing the Effects of Transactions in T-Accounts [LO 2-2, LO 2-3, LO 2-5] [The following information applies to the questions displayed below.] Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Received $44,000 cash from the managers; each was issued 1,200 shares of common stock. b. Purchased equipment for use in the business at a cost of $7,200; one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Signed an agreement with a cleaning service to pay it $60 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $13,000 for personal use from a local bank, signing a one-year note. E2-8 (Algo) Part 1 Required: 1. For each of the above transactions, record its effects in the appropriate T-accounts. Assume all beginning balances are zero. Debit Beginning Balance Ending Balance Cash 0 44,000 44,000 + Credit Proy Beginning Balance Ending Balance Debit 8 Equipment Credit
Transcribed Image Text:! Required information E2-8 (Algo) Analyzing the Effects of Transactions in T-Accounts [LO 2-2, LO 2-3, LO 2-5] [The following information applies to the questions displayed below.] Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Received $44,000 cash from the managers; each was issued 1,200 shares of common stock. b. Purchased equipment for use in the business at a cost of $7,200; one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Signed an agreement with a cleaning service to pay it $60 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $13,000 for personal use from a local bank, signing a one-year note. E2-8 (Algo) Part 1 Required: 1. For each of the above transactions, record its effects in the appropriate T-accounts. Assume all beginning balances are zero. Debit Beginning Balance Ending Balance Cash 0 44,000 44,000 + Credit Proy Beginning Balance Ending Balance Debit 8 Equipment Credit
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