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

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Accounting

Mulkeen Service Company, Incorporated, was incorporated by Conor Mulkeen and five other managers. The following activities occurred during the year: a. Received $52,000 cash from the managers; each was issued 1,400 shares of common stock. b. Purchased equipment for use in the business at a cost of $9,600; 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 $80 per week for cleaning the corporate offices, beginning next year. d. Conor Mulkeen borrowed $17,000 for personal use from a local bank, signing a one-year note. 3-a. What will be your response to transaction (c)? The agreement in (c) involves no exchange or receipt of cash, goods, or services and thus is not yet a transaction. The agreement in (c) involves exchange of cash and services and thus is a transaction. 3-b. What will be your response to transaction (d)? O Transaction (d) occurs between the owners and others, the separate entity assumption implies this transaction does not affect the business. O Transaction (d) occurs between the company and others, so this transaction affect the business

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