Question

Saved E2-9 (Algo) Analyzing the Effects of Transactions in T-Accounts LO 2-4 [The following information applies to the questions displayed below.) Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors. The following activitles occurred during the year: a. Received $84,000 cash from the six investors; each investor was issued 9,800 shares of common stock with a par value of $0.20 per share. b. Purchased equipment for use in the business at a cost of $32,000; 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 $260 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $4,400 in cash and land valued at $29,000 in exchange for 2.400 shares of stock in the company. e. Lent $3,900 to one of the investors, who signed a note due in six months. f. Bennett Griffin borrowed $8,400 for personal use from a local bank, signing a one-year note. E2-9 Part 1 Required: 1. For each of the preceding transactions, record the effects of the transaction in the appropriate T-accounts Cash 0 Notes Resolvable 0 Beg. Bal Beg. Bal of 6 Next > < Prex 3 Reviews docx ADMN 403 FAZ Pdf Zoom (1 kg

Answer 1

Answer

Cash

Beginning Balance	$ 0
(a) Capital / Common Stock	$ 84,000	(b) Equipment [$32000*1/4]	$ 8,000
(d) Additional. Capital	$ 4,400	(e) Notes Receivable	$ 3,900
Ending Balance (a+d-b-e)	$ 76,500

Notes Receivable

(e) Cash	$ 3,900
Ending Balance	$ 3,900

Equipment

(b) Cash	$ 8,000
(b) Notes Payable	$ 24,000
Ending Balance	$ 32,000

Land

(d) Additional . Capital	$ 29,000
Ending Balance	$ 29,000

Notes Payable

Beginning Balance	$ 0	$ 24,000	(b) Equipment [$ 32,000*3/4]
Ending Balance		$ 24,000

Common Stock

		$ 11,760	(a) Cash [9,800 Shares * $ 0.20 * 6 Investors]
		$ 480	(d) Land [2400 Shares * $ 0.20]
Ending Balance		$ 12,240

Additional Paid in Capital

		$72,240	(a) Cash [$ 84,000 - $ 11,760]
		$ 32,920	(d) Cash / Land [$ 4,400 + $ 29,000 - $480]
Ending Balance		$1,05,160

Note :-

Transaction (c) & (f) will not have journal entry. Because transaction (c) is about signing an agreement, So, the transaction can't consider for journalizing. Transaction (d) have no direct effect on the company, because the transaction is about personal borrowings of an investor.