Harrigan Service Company, Inc., was incorporated by lan Harrigan and five other managers.The following activities occurred during the year:1. Received $71,400 cash from the managers; each was issued 1,190 shares.2. Purchased equipment for use in the business at a cost of $50,000; one-fourth was paid incash and the company signed a note for the balance (due in six months).3. Signed an agreement with a cleaning service to pay it $690 per week for cleaning thecorporate offices, beginning next week.4. Ian Harrigan borrowed $19,500 for personal use from a local bank, signing a one-yearnote. Required:1. Create T-accounts for the following accounts: Cash, Equipment, Note Payable, and Contributed Capital. Beginning balances arezero. For each of the above transactions, record its effects in the appropriate T-accounts. Include referencing and totals for each T-account.Beg. bal.a.End. bal.Beg. bal.End. bal.Cash0Assets71,40071,400Note Payable0= LiablitiesBeg. bal.End. bal.Beg. bal.End. bal.Equipment02. Using the balances in the T-accounts, enter the following amounts for the accounting equation.+ Shareholders' EquityContributed Capital0

T-account :— It is the general ledger account which is prepared to post journal entries. It is the…

Required: 1. Create T-accounts for the following accounts: Cash, Equipment, Note Payable, and Contributed Capital. Beginning balances are zero. For each of the above transactions, record its effects in the appropriate T-accounts. Include referencing and totals for each T- account. Beg. bal. a. End. bal. Beg. bal. End. bal. Cash 0 Assets 71,400 71,400 Note Payable 0 =Liablities Beg. bal. End. bal. Beg. bal. End. bal. Equipment 0 2. Using the balances in the T-accounts, enter the following amounts for the accounting equation. + Shareholders' Equity Contributed Capital 0

Required: 1. Create T-accounts for the following accounts: Cash, Equipment, Note Payable, and Contributed Capital. Beginning balances are zero. For each of the above transactions, record its effects in the appropriate T-accounts. Include referencing and totals for each T- account. Beg. bal. a. End. bal. Beg. bal. End. bal. Cash 0 Assets 71,400 71,400 Note Payable 0 =Liablities Beg. bal. End. bal. Beg. bal. End. bal. Equipment 0 2. Using the balances in the T-accounts, enter the following amounts for the accounting equation. + Shareholders' Equity Contributed Capital 0

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 56P

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