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In: Accounting

Mulkeen Service Company, Inc., was incorporated by Conor Mulkeen and five other managers. The following activities...

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

  1. Received $60,000 cash from the managers; each was issued 1,000 shares of common stock.
  2. Purchased equipment for use in the business at a cost of $12,000; 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 $120 per week for cleaning the corporate offices, beginning next year.
  4. Conor Mulkeen borrowed $10,000 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.

Cash, Equipment, Note Payable, Common Stock

Beginning / Ending balance

2. Asset ?= Liability ?+ Stockholders equity ?

3. What will be your response to transaction (c)?

What will be your response to transaction (d)?

Solutions

Expert Solution

PLZ LIKE IF IT WAS HELPFUL

ekkarill92 answered 2 years ago
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