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[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 $60,000 cash from the managers; each was issued 1,000 shares of common stock. b. Purchased equipment for use in the business at a cost of $12,000; 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 $120 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $10,000 for personal use from a local bank, signing a one-year note. 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Stockholders' Equity Liabilities

[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 $60,000 cash from the managers; each was issued 1,000 shares of common stock. b. Purchased equipment for use in the business at a cost of $12,000; 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 $120 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $10,000 for personal use from a local bank, signing a one-year note. 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Stockholders' Equity Liabilities

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: 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 Debit Beginning Balance Ending Balance Cash Notes Payable Credit Credit Beginning Balance Ending Balance Debit Ending Balance Debit Beginning Balance Equipment Common Stock Required information [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: year. d. Conor Mulkeen borrowed $10,000 for personal use from a local bank, signing a one-year note. Stockholders' Equity Credit a. Received $60,000 cash from the managers; each was issued 1,000 shares of common stock. b. Purchased equipment for use in the business at a cost of $12,000; 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 $120 per week for cleaning the corporate offices, beginning next 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Credit
Transcribed Image Text: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 Debit Beginning Balance Ending Balance Cash Notes Payable Credit Credit Beginning Balance Ending Balance Debit Ending Balance Debit Beginning Balance Equipment Common Stock Required information [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: year. d. Conor Mulkeen borrowed $10,000 for personal use from a local bank, signing a one-year note. Stockholders' Equity Credit a. Received $60,000 cash from the managers; each was issued 1,000 shares of common stock. b. Purchased equipment for use in the business at a cost of $12,000; 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 $120 per week for cleaning the corporate offices, beginning next 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Credit
Required information [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 $60,000 cash from the managers; each was issued 1,000 shares of common stock. b. Purchased equipment for use in the business at a cost of $12,000; 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 $120 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $10,000 for personal use from a local bank, signing a one-year note.
Transcribed Image Text:Required information [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 $60,000 cash from the managers; each was issued 1,000 shares of common stock. b. Purchased equipment for use in the business at a cost of $12,000; 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 $120 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $10,000 for personal use from a local bank, signing a one-year note.
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