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 $87,000 cash from the six investors; each investor was issued 10,100 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 $35,000; 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 $290 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $4,700 in cash and land valued at $32,000 in exchange for 2,700 shares of stock in the company. e. Lent $4,200 to one of the investors, who signed a note due in six months. f. Bennett Griffin borrowed $8,700 for personal use from a local bank, signing a one-year note.

Answer 1

Cash		Notes Receivable
Particulars	Amount	Amount	Particulars		Particulars	Amount	Amount	Particulars
Beg Bal	0	$8,750 ($35,000 (1-1/4)	Equipment		Beg Bal		$0
Common Stock	$1.010	$3,400	Notes Receivable				$3,400	Cash
Additional Paid in Capital	$85,990
Common Stock	$270 ($2,700*.10)
Additional Paid in Capital	$2,430 ($2,700 - $270)
End Bal	$77,550				End Bal		$3,400
Equipment		Land
Particulars	Amount	Amount	Particulars		Particulars	Amount	Amount	Particulars
Beg Bal	$0				Beg Bal	$0
Cash	$8,750				Addition in Piad in Capital	$32,000
Notes Payable	$26,250
					End Bal	$32,000
End Bal	$35,000
					Common Stock
Notes Payable		Particulars	Amount	Amount	Particulars
Particulars	Amount	Amount	Particulars		Beg Bal		$0
Beg Bal		$0					$1,010	Cash
		$26,250 ($35,000 - $8,750)	Equipment				$270	Cash
End Bal		$26,250			End Bal		$1,280

Additional Paid in Capital
Particulars	Amount	Amount	Particulars
Beg Bal		$0
		$85,990	Cash
		$2,430	Cash
		$32,000	Land
End Bal		$120,420