Journal Entries, Trial Balance, and Financial Statements (Appendix)

Peregrin Delivery is incorporated on January 2 and enters into the following transactions during its first month of operations.

Required:

Question Content Area

1. Prepare journal entries on the books of Peregrin Delivery 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. blank. January 6: Purchased five new delivery trucks for a total of $45,000 in cash. January 31: Performed services on account that amounted to $15,900 during the month. January 31: Cash amounting to $7,490 was received from customers on account during the month. following month to pay its bill. 2. Prepare a trial balance at January 31 . If an amount box does not require an entry, leave it blank. Peregrin Delivery Trial Balance January 31 3. Prepare an income statement for the month of January 31 . 4. Prepare a classified balance sheet at January 31 . 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