Reference no: EM132638232

Question - Analyzing the Effects of Transactions in T-Accounts

Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors. The following activities occurred during the year:

1. Received $78,000 cash from the six investors; each investor was issued 9,200 shares of common stock with a par value of $0.20 per share.

2. Purchased equipment for use in the business at a cost of $26,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months).

3. Signed an agreement with a cleaning service to pay $200 per week for cleaning the corporate offices next year.

4. Received an additional contribution from investors who provided $3,800 in cash and land valued at $23,000 in exchange for 1,800 shares of stock in the company.

5. Lent $3,300 to one of the investors, who signed a note due in six months.

6. Bennett Griffin borrowed $7,800 for personal use from a local bank, signing a one-year note.