Question

20 Saved Help Save & Exit Submit Check my work Harrigan Service Company, Inc., was incorporated by lan Harrigan and five other managers. The following activities occurred during the year. a. Received $70,200 cash from the managers, each was issued 1,170 shares b. Purchased equipment for use in the business at a cost of $46,000; 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 it $630 per week for cleaning the corporate offices, beginning next week. d. lan Harrigan borrowed $18,500 for personal use from a local bank, signing a one year note. Required: 1. Create T-accounts for the following accounts: Cash, Equipment, Note Payable, and Contributed Capital Beginning balances are zero. For each of the above transactions, record its effects in the appropriate T-accounts. Include referencing and totals for each T- account. Cash Equipment Beg bal Beg bal End bal End. bal Note Payable Contributed Capital Ran hal Ren hal

Answer 1

Answer-

Cash
Beginning balance	$0	Equipment (b)	$11,500 ($46,000*1/4)
(a)Contributed capital	$70,200
Ending Balance	$58,700
Equipment (Assets)
Beginning balance	$0
(b) cash	$11,500
(b) notes payable	$34,500
Ending Balance	$46,000
Notes Payable (Liability)
		Beginning balance	$0
		Equipment	$34,500
		Ending balance	$34,500
Contributed Capital (SE)
		Beginning balance	$0
		Cash	$70,200
		Ending balance	$70,200

Note- c is not monetary transaction so it will not be recorded.

d is for person use of owner so it will also be not recorded.