Griffin Service Company, Incorporated, was organized by Bennett Griffin and five other investors (that is, six...

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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: a. 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. b. Signed a five-year lease for $162,000 for the right to use a building each year. c. 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). d. Signed an agreement with a cleaning service to pay $200 per week for cleaning the corporate offices next year. e. 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. f. Lent $3,300 to one of the investors, who signed a note due in six months. g. Bennett Griffin borrowed $7,800 for personal use from a local bank, signing a one-year note. E2-9 Part 2 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets Liabilities + Stockholders' Equity < Prev 25 of 25 Next > 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: a. 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. b. Signed a five-year lease for $162,000 for the right to use a building each year. c. 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). d. Signed an agreement with a cleaning service to pay $200 per week for cleaning the corporate offices next year. e. 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. f. Lent $3,300 to one of the investors, who signed a note due in six months. g. Bennett Griffin borrowed $7,800 for personal use from a local bank, signing a one-year note. E2-9 Part 2 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets Liabilities + Stockholders' Equity < Prev 25 of 25 Next >

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To determine the amounts for the accounting equation Liabilities and Stockholders Equity we need to analyze the transactions and their impact on the c... View the full answer