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Harrigan Service Company, Inc., was incorporated by Ian Harrigan and five other managers. The following...

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Accounting

Harrigan Service Company, Inc., was incorporated by Ian 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 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 $690 per week for cleaning the corporate offices, beginning next week.
  4. Ian Harrigan borrowed $19,500 for personal use from a local bank, signing a one-year note.

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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 Taccount. 2. Using the balances in the T-accounts, enter the following amounts for the accounting equation

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