Question

In: Accounting

For each of the above transactions, record its effects in the appropriate T-accounts. Assume all beginning balances are zero.


Mulkeen Service Company, Inc., was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year:

  1. Received $58,000 cash from the managers; each was issued 1,600 shares of common stock.

  2. Purchased equipment for use in the business at a cost of $11,400; one-fourth was paid in cash and the company signed a note for the balance (due in six months).

  3. Signed an agreement with a cleaning service to pay it $95 per week for cleaning the corporate offices, beginning next year.

  4. Conor Mulkeen borrowed $20,000 for personal use from a local bank, signing a one-year note.

Required:

  1. For each of the above transactions, record its effects in the appropriate T-accounts. Assume all beginning balances are zero.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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