D Not secure eztomheducationcomhmtpx Questions 35 of 15 Save

D Not secure ezto.mheducation.com/hm.tpx Questions 3-5 (of 15) Save & ExitS /The following information applies to the questions displayed below] Mulkeen Service Company, Inc. was incorporated by Conor Mulkeen and five other managers. The following actvities occurred during the year a Received $58 000 cash from the managers, each was issued 1,600 shares of common stock b. 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). c Signed an agreement with a cleaning service to pay it $95 per week for cleaning the corporate offices d. Conor Mulkeen borrowed $20,000 for personal use from a local bank, signing a one-year note. beginning next year 6.66 points Required Information Required: 1. For each of the above transactions, record its offects in the appropriate Taccounts. Assume all beginning balances are zero Beg Bal. Beg. Bal End Bal End. Bal Beg Ball Beg. Bal End Bal End Ball Hints References eBook & Resources O Type here to search Ei

Solution

Cash Beg. Balance $                          -   For Furniture $                 2,850 Issue of Common Stock $                 58,000 Total $                 58,000 # Total $                 2,850 Ending Balance $                 55,150 Common Stock Beg. Balance $                          -   Cash collected $              58,000 Ending Balance $                 58,000 Total $                 58,000 # Total $              58,000 Bal $                        -   Equipment Beg. Balance To Cash (1/4 X $ 11,400) $                   2,850 Note Payable $                   8,550 By Ending Balance $              11,400 Total $                 11,400 # Total $              11,400 Ending balance $                 11,400 Bal $                        -   Note Payable Beg. Balance $                          -   Furniture $                 8,550 Ending Balance $                   8,550 $                   8,550 $                 8,550 Answer = 2) Assets = Liabilities + Stockholder\'s Equity Cash + Equipmet = Common Stock + Note Payable $ 55,150 + $ 11,400 = $ 58,000+$ 8,550 $ 66,550 = $ 66,550 Question = 3a) Answer = Option 2 = the agreement in C involvement no exchnage of receipt of cash , Goods or Services and thus is not a yet transaction Question 3 (B) Answer = Option 2 = Transaction D accurs between the owners and others , the seprate entity assumtion implies this transaction does not                                                  effect the business