Question

! Required information (The following information applies to the questions displayed below.) Griffin Service Company, Inc., was organized by Bennett Griffin and five other investors. The following activities occurred during the year: a. Received $88,000 cash from the six investors; each investor was issued 10,200 shares of common stock with a par value of $0.20 per share. b. Purchased equipment for use in the business at a cost of $36,000; 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 $300 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $4,800 in cash and land valued at $33,000 in exchange for 2,800 shares of stock in the company. e. Lent $4,300 to one of the investors, who signed a note due in six months. f. Bennett Griffin borrowed $8,800 for personal use from a local bank, signing a one-year note. 2. Using the balances in the T-accounts, fill in the following amounts for the accounting equation: Assets = Liabilities + Stockholders' Equity

Answer 1

2

Assets 152800 = Liabilities 27000 + Stockholders' Equity 125800

Workings:
	Assets	Liabilities	Stockholders' Equity
a	88000		88000
b	27000	27000
c	0	0	0
d	37800		37800
e	0	0	0
f	0	0	0
Balances	152800	27000	125800