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 $81,000 cash from the six investors; each investor was issued 9,500 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 $29,000; 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 $230 per week for cleaning the corporate offices next year. d. Received an additional contribution from investors who provided $4,100 in cash and land valued at $26,000 in exchange for 2,100 shares of stock in the company. e. Lent $3,600 to one of the investors, who signed a note due in six months. f. Bennett Griffin borrowed $8,100 for personal use from a local bank, signing a one-year note.

Answer 1

cash
a	81000	7250 (29000*1/ )	b
d	4100	3600	e
End bal	74250

Notes receivable
e	3600
End bal	3600

Equipment
b	29000
End bal	29000

Land
d	26000
End bal	26000

Notes payable
		21750 (29000-7250)	b
End bal		21750

Common stock
		$5700 (9500 shares*$0.10)*6 investors	a
		$210 (2100 shares*$0.10)	d
End bal		5910

Additional paid in capital
		$75300 ($81000-$5700)	a
		$29890 ($4100+26000-210)	d
End bal		$105190

Note - There will be No Entry for transaction (3) and (6)