Green Bay Corporation began business in July 2012 as a commercial fishing operation and a passenger service

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Green Bay Corporation began business in July 2012 as a commercial fishing operation and a passenger service between islands. Shares of stock were issued to the owners in exchange for cash. Boats were purchased by making a down payment in cash and signing a note payable for the balance.

Fish are sold to local restaurants on open account, and customers are given 15 days to pay their account. Cash fares are collected for all passenger traffic. Rent for the dock facilities is paid at the beginning of each month. Salaries and wages are paid at the end of the month. The following amounts are from the records of Green Bay Corporation at the end of its first month of operations:

Green Bay Corporation began business in July 2012 as a

Required
1. Prepare an income statement for the month ended July 31, 2012.
2. Prepare a balance sheet at July 31, 2012.
3. What information would you need about Notes Payable to fully assess Green Bay's long-term viability? Explain your answer.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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