FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Grady Service Company Inc. was organized by Chris Grady and five other investors. The following events occurred during the year: |
| a. |
Received $68,400 cash from the investors; each was issued 1,520 shares. |
| b. |
Purchased equipment for use in the business at a cost of $18,400; one-fourth was paid in cash, and the company signed a note for the balance, payable in six months. |
| c. |
Signed an agreement with a cleaning service to pay it $320 per week for cleaning the corporate offices. |
| d. | Lent $3,700 to one of the investors, who signed a note due in six months. |
| e. |
Issued shares to additional investors, who contributed $7,200 in cash and a lot of land valued at $16,200. |
| f. | Paid the amount of the note payable in (b). |
| g. |
Conor Mulkeen borrowed $11,200 for personal use from a local bank and signed a note payable in one year. |
| Required: |
| 1. |
Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No |
| 2. |
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| 3. |
Using the balances in the T-accounts, fill in the following amounts for the |
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