Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors. During the year the following activities were carried out:

1. He received $79,000 in cash from the six investors; each investor was issued 9,300 shares of common stock with a par value of $0.10 per share.
2. Purchased equipment for business use at a cost of $27,000; one quarter was paid in cash and the company signed a promissory note for the balance (due in six months).
3. He signed an agreement with a cleaning service to pay $210 per week to clean the corporate offices for the next year.
4. He received an additional contribution from investors who provided $3,900 in cash and land valued at $24,000 in exchange for 1,900 shares in the company.
5. He lent $3,400 to one of the investors, who signed a promissory note maturing in six months.
6. Bennett Griffin borrowed $7,900 for personal use from a local bank and signed a one-year note.

Required:

1. For each of the above transactions, record the effects of the transaction in the corresponding T accounts.

Answer rating: 100% (QA)

Investors Contributions Debit Cash 79000 Credit Common Stock 93000 Equipment Purchase D... View the full answer