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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcae058be-aaa5-489a-9a9e-aad1d276a4c8%2F61ff9731-cbd5-4e83-b6f6-0aecac447651%2Ffm9n1cp_processed.jpeg&w=3840&q=75)
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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