Required information

E$2-8($Algo$)$ Analyzing the Effects of Transactions in T$-$Accounts $[$LO $2-2,$ LO $2-3,$ LO $2-5]$

$[$The following information applies to the questions displayed below.$]$

Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following

activities occurred during the year:

a$.$ Received $$44,000$ cash from the managers; each was issued $1,200$ shares of common stock.

b$.$ Purchased equipment for use in the business at a cost of $$7,200$; one$-$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 it $$60$ per week for cleaning the corporate offices, beginning next

year.

d$.$ Conor Mulkeen borrowed $$13,000$ for personal use from a local bank, signing a one$-$year note.

E$2-8($Algo$)$ Part $2$

Using the balances in the T$-$accounts, fill in the following amounts for the accounting equation:Required information

E$2-8($Algo$)$ Analyzing the Effects of Transactions in T$-$Accounts $[$LO $2-2,$ LO $2-3,$ LO $2-5]$

$[$The following information applies to the questions displayed below.$]$

Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following

activities occurred during the year:

a$.$ Received $$44,000$ cash from the managers; each was issued $1,200$ shares of common stock.

b$.$ Purchased equipment for use in the business at a cost of $$7,200$; one$-$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 it $$60$ per week for cleaning the corporate offices, beginning next

year.

d$.$ Conor Mulkeen borrowed $$13,000$ for personal use from a local bank, signing a one$-$year note.

E$2-8($Algo$)$ Part $1$

Required:

For each of the above transactions, record its effects in the appropriate T$-$accounts. Assume all beginning balances are zero.