n [The following information applies to the questions displayed below} Granger Service Company, Inc., was organized by

 

n
 

 

Transcribed Image Text:

[The following information applies to the questions displayed below} Granger Service Company, Inc., was organized by Ted Granger and five other investors. The following activities occurred during the year: a. Received $85,000 total cash from the six investors; each investor was issued 9,900 shares of common stock with a par value of $0.10 per share. b. Purchased equipment for use in the business at a cost of $33,000: one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Signed an agreement with a cleaning service to pay $270 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $4,500 in cash and land valued at $30,000 in exchange for 2,500 shares of stock in the company e. Lent $4,000 to one of the investors who signed a note due in six months. f. Ted Granger borrowed $8,500 for personal use from a local bank, signing a one-year note. Include acoounts fo Required: te T accounts for the following accounts: Cash, Notes Receivable, Equipment, Land, Notes Payable, Common Stock, and Adcitional Palo in Capital. Beglinning balances are s0. For each of the preceding transactions, record the etects of the transaclion in the appropriate T-accou reach Taccount Cash Notes Rocelvabla Beg. Bl. Beg lal End. Bal. End Bal Equipment Land Bey. Bal. Beg Bel End. Dal. End Bal Notes Payable Common Stock Beg. Bal. Beg. Bal. End. Bal. End. Bal. Additional Paid-in Capital Beg. Bal. End. Bal. 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets = Liabilities + Stockholders' Equity [The following information applies to the questions displayed below} Granger Service Company, Inc., was organized by Ted Granger and five other investors. The following activities occurred during the year: a. Received $85,000 total cash from the six investors; each investor was issued 9,900 shares of common stock with a par value of $0.10 per share. b. Purchased equipment for use in the business at a cost of $33,000: one-fourth was paid in cash and the company signed a note for the balance (due in six months). c. Signed an agreement with a cleaning service to pay $270 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $4,500 in cash and land valued at $30,000 in exchange for 2,500 shares of stock in the company e. Lent $4,000 to one of the investors who signed a note due in six months. f. Ted Granger borrowed $8,500 for personal use from a local bank, signing a one-year note. Include acoounts fo Required: te T accounts for the following accounts: Cash, Notes Receivable, Equipment, Land, Notes Payable, Common Stock, and Adcitional Palo in Capital. Beglinning balances are s0. For each of the preceding transactions, record the etects of the transaclion in the appropriate T-accou reach Taccount Cash Notes Rocelvabla Beg. Bl. Beg lal End. Bal. End Bal Equipment Land Bey. Bal. Beg Bel End. Dal. End Bal Notes Payable Common Stock Beg. Bal. Beg. Bal. End. Bal. End. Bal. Additional Paid-in Capital Beg. Bal. End. Bal. 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets = Liabilities + Stockholders' Equity

Answer rating: 100% (QA)

Solution Explanation regarding transactions a Total cash received from investors 81000 No of equity ... View the full answer