Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors. The following activities occurred
Question:
Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors. The following activities occurred during the year:
Received $72,000 cash from the six investors; each investor was issued 8,600 shares of common stock with a par value of $0.10 per share.
Purchased equipment for use in the business at a cost of $20,000; one-fourth was paid in cash and the company signed a note for the balance (due in six months).
Signed an agreement with a cleaning service to pay $140 per week for cleaning the corporate offices next year.
Received an additional contribution from investors who provided $3,200 in cash and land valued at $17,000 in exchange for 1,200 shares of stock in the company.
Lent $2,700 to one of the investors, who signed a note due in six months.
Bennett Griffin borrowed $7,200 for personal use from a local bank, signing a one-year note.
Required:
Using the balances in the T-accounts, fill in the following amounts for the accounting equation:
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge