Question

Granite Products, Inc. had the following transactions during the month of March, its first month of operations.

• March 1 The corporation issued 12,000 shares of capital stock to George Granite in exchange for $120,000 cash.
• March 10 The corporation purchased $73,000 of equipment, making a down payment of $18,000 and signing a note payable for the balance.
• March 25 The corporation made a $9,000 payment on the amount owed on the note.

Create T-accounts, either on paper or in Excel, and post each transaction to the appropriate accounts. Determine the balance of each account.

If you use paper, take a photo of your work and upload it. If you use Excel or Word, upload the file.

Answer 1

	Common Stock	$
-	-	Beginning Balance	0
		Cash	120000
-	-	Ending Balance	120000

	Equipment
Beginning Balance	0
Cash	18000
Note Payable	55000
Ending Balance	73000

	Notes payable
		Beginning Balance	0
Cash	9000	Equipment	55000
		Ending Balance	46000

	Cash
Beginning Balance	0
Capital	120000	Equipment	18000
		Note Payable	9000
Ending Balance (C )	93000