Question
Please answer all three parts of the question asked below : Harry and Ron formed Granger corporation on January 1,2013. Each contributed $200,000 in exchange
Please answer all three parts of the question asked below :
Harry and Ron formed Granger corporation on January 1,2013. Each contributed $200,000 in exchange for 10,000 shares of common stock with a par value of $1. The following are the transactions for the month of January, the first month of operations.
Company acquired 400 acres of land in south Dakota at a cost of $500 per acre, paying in full.
Company established a line of credit with Dakota National bank in the amount of $500,000 using the land as collateral.
Purchased supplies for $3,500 cash.
Paid for Januarys equipment rental, cash $50,000.
Sold timber from the land for $75,000.
Signed a 1 year lease on a 2,000 sq ft office, paying $2800 for the month.
Sold large rocks to a landscaping customer, receiving half of the $15,000 in cash.
Paid $3000 for fuel and oil used in the equipment.
Sold excess topsoil to a developer, 20 dump truck loads at $100 per load, cash
Paid employees for the month, $12,000.
ABC sign Company installed no trespassing signs and company signage at a cost of $1500
Received and paid invoice for insurance premiums for months of January-March $15,000
Received invoice for 2,300 for fuel and oil used in the equipment.
On the last day of the month purchased 2 pickup trucks from a local dealer for $25,000 each, Dakota National bank provided the loan with a rate of 2.49%, 12 months
Signed contract to purchase an additional 250 acres of land at a cost of $600 per acre.
Accounts Listing :
Cash , , accounts receivable, Prepaid insurance, Trucks, Land, Accounts payable, Line of credit payable, Note payable, common stock, Additional paid in capital , Revenue, advertising exp, Supplies exp, equipment rental exp, office lease exp, Fuel/oil exp , insurance expense , wages expense.
Requirements :
1)Provide a journal entry for each transaction or state no journal required
2) Prepare the income statement for the month of January , using proper form, calculate EPS.
3) prepare the balance sheet for the month of January , using proper form, calculate current ratio.
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