Blue Jay Delivery Service is incorporated on January 2 and enters into the following transactions during its first month of operations. Required: 1. Prepare journal entries on the books of Blue Jay Delivery Service to record the transactions entered into during the month. How does this entry affect the accounting equation? Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect),"+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. January 2: Filed articles of incorporation with the state and issued 100,000 shares of capital stock. Cash of $100,000 is received from the new owners for the shares. Journal Balance Sheet Income Stateme Stockholders' Date Description Debit Credit Assets = Liabilities Equity Revenues Expenses Jan. 2 Income Statement Net Revenues Expenses = Income January 3: Purchased a warehouse and land for $66,000 in cash. An appraiser values the land at $20,000 and the warehouse at $46,000. If an amount box does not require an entry, leave it blank. Journal Balance Sheet Income Statem Stockholders' Date Description Debit Credit Assets Liabilities + Equity Revenues Expense Jan. 3 Income Statement Net Revenues Expenses II Income January 4: Signed a three-year promissory note at Third State Bank in the amount of $36,000. Journal Balance Sheet Income Statemer Stockholders' Date Description Debit Credit Assets Liabilities + Equity Revenues Expenses Jan. 4 Income Statement Net Revenues Expenses = Income January 6: Purchased five new delivery trucks for a total of $45,000 in cash. Journal Balance Sheet Income Statemer Stockholders' Date Description Debit Credit Assets Liabilities + Equity Revenues Expenses Jan. 6 Income Statement Net Revenues Expenses = Income January 31: Performed services on account that amounted to $15,900 during the month. Journal Balance Sheet Income Statem Stockholders' Date Description Debit Credit Assets Liabilities + Equity Revenues Expense Jan. 31 Income Statement Net Revenues Expenses Income January 31: Cash amounting to $7,490 was received from customers on account during the month. Journal Balance Sheet Income State Stockholders' Date Description Debit Credit Assets Liabilities + Equity Revenues Expens Jan. 31 Income Statement Net Revenues Expenses Income Income Statement Net Revenues Expenses Income January 31: Established an open account at a local service station at the beginning of the month. Purchases of gas and oil during January amounted to $3,230. Blue Jay has until the 10th of the following month to pay its bill. Journal Balance Sheet Income Stateme Stockholders' Date Description Debit Credit Assets Liabilities Equity Revenues Expenses Jan. 31 Income Statement Net Revenues Expenses Income 2. Prepare a trial balance at January 31. If an amount box does not require an entry, leave it blank. Blue Jay Delivery Service Trial Balance January 31 Debit Credit $ Totals $ 3. Prepare an income statement for the month of January 31. Blue Jay Delivery Service Income Statement For the Month of January 4. Prepare a classified balance sheet at January 31. Blue Jay Delivery Service Balance Sheet January 31 Assets Current assets: $ Total current assets $ Property, plant, and equipment: $ Total property, plant, and equipment 00 Total assets Liabilities and Stockholders' Equity Current liabilities: Long-term debt: Liabilities and Stockholders' Equity Current liabilities: Long-term debt: Total liabilities O Total stockholders' equity Total liabilities and stockholders' equity 5. Assume that you are considering buying stock in the company. Beginning with the transaction to record the purchase of the property on January 3, indicate which information you would least consider about each of the transactions during the remainder of the month. Jan. 3: Jan. 4: Jan. 6: Jan. 31
