Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors (that is, six in total). The following activities occurred during the year:
a. Received $70,000 cash from the six investors; each investor was issued 8,400 shares of common stock with a par value of $0.10 per share.
b. Signed a five-year lease for $150,000 for the right to use a building each year.
c. Purchased equipment for use in the business at a cost of $18,000; 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 $120 per week for cleaning the corporate offices next year.
e. Received an additional contribution from investors who provided $3,000 in cash and land valued at $15,000 in exchange for 1,000 shares of stock in the company.
f. Lent $2,500 to one of the investors, who signed a note due in six months.
g. Bennett Griffin borrowed $7,000 for personal use from a local bank, signing a one-year note.

Required:
1. Create T-accounts for the following accounts: Cash, Notes Receivable, Equipment, Land, Operating Lease Right-of-Use Assets, Notes Payable, Long-Term Lease Liabilities, Common Stock, and Additional Paid-in Capital. Beginning balances are $0. For each of the transactions (a) through (g), record the effects of the transaction in the appropriate T-accounts. Include good referencing and totals for each T-account.

2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation:

Assets $_________ = Liabilities $_________ + Stockholders’ Equity $_________

Assets $_________

3. Explain your responses to events (d) and (g).