Griffin Service Company, Incorporated, was organized by Bennett Griffin and five other investors (that is,...
60.1K
Verified Solution
Link Copied!
Question
Accounting
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:
Received $74,000 cash from the six investors; each investor was issued 8,800 shares of common stock with a par value of $0.20 per share.
Signed a five-year lease for $156,000 for the right to use a building each year.
Purchased equipment for use in the business at a cost of $22,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months).
Signed an agreement with a cleaning service to pay $160 per week for cleaning the corporate offices next year.
Received an additional contribution from investors who provided $3,400 in cash and land valued at $19,000 in exchange for 1,400 shares of stock in the company.
Lent $2,900 to one of the investors, who signed a note due in six months.
Bennett Griffin borrowed $7,400 for personal use from a local bank, signing a one-year note.
For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
