! Required information C4-1 (Algo) From Recording Transactions to Preparing Accrual and Deferral Adjustments and Reporting Results on the Balance Sheet and Income Statement (Chapters 2, 3, and 4) (LO 2-3, LO 3-3, LO 4-2, LO 4- 3, LO 4.4) [The following information applies to the questions displayed below) RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first month a. RHC was formed with an investment of $10,400 cash, paid in by the leader of the band on January 3 in exchange for common stock, b. On January 4, RHC purchased music equipment by paying $1,200 cash and signing an $9,200 promissory note payable in three years c. On January 5, RHC booked the band for six concert events, at a price of $2,500 each, but no cash was collected yet. d. Of the six events, four were completed between January 10 and 20. e. On January 22, cash was collected for three of the four events. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,500 fee for one of 9. On January 27, RHC paid $2,340 cash for the band's travel-related costs. h. On January 28, RHC pald its band members a total of $2,160 cash for salaries and wages for the first three events. 1. As of January 31, the band members hadn't yet been paid wages for the fourth event completed in January, but they would be paid in February at the same rate as for the first three events M. As of January 31, RHC has not yet recorded the $111 of monthly depreciation on the equipment k. Also, RHC has not yet paid or recorded the $69 interest owed on the promissory note at January 31. I RHC is subject to a 25% tax rate on the company's income before tax them. C4-1 (Algo) Part 2 Required information 2. Post the entries from requirement 1 to 1-accounts and prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Reg 2A Req 28 Post the entries from requirement 1 to T-accounts. Cash Accounts Receivable Credit Credit Debit Beginning Balance Debit Beginning Balance 0 Ending Balance Ending Balance Equipment Credit Accumulated Depreciation Debit Beginning Balance Debit Beginning Balance Credit Ending Balance Ending Balance o Deferred Revenue Credit Credit Salaries and Wages Payable Debit Beginning Balance Debit Beginning Balance 0 Ending Balance Ending Balance Income Tax Payable Interest Payable Credit Credit Debit Beginning Balance Debit Beginning Balance 0 0 Ending Balance Ending Balance Common Stock Credit Credit Notes Payable (long-term) Debit Beginning Balance Debit Beginning Balance 0 0 Ending Balance Ending Balance Retained Earnings Service Revenue Credit Credit Debit Beginning Balance Debit Beginning Balance Ending Balance Ending Balance Travel Expense Credit Salaries and Wages Expense Debit Beginning Balance Debit Beginning Balance Credit Ending Balance Ending Balance Interest Expenso Depreciation Expense Credit Credit Debit Beginning Balance Debit Beginning Balance 0 0 Ending Balance Ending Balance Income Tax Expense Income Tax Expense Debit Credit Beginning Balance 0 Ending Balance Prepare an adjusted trial balance. RUNHEAVY CORPORATION Adjusted Trial Balance Credit Cash $ Debit 13,450 2,500 10,400 Accounts Receivable $ 111 1,250 720 69 1,150 9,200 10,400 Equipment Accumulated Depreciation Deferred Revenue Salaries and Wages Payable Interest Payable Income Tax Payable Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Travel Expense Salaries and Wages Expense Interest Expense Depreciation Expense Income Tax Expense Totals 10,000 1,150 27,500 $ $ 32,900 Req 3A Reg 3B Prepare an income statement for January 31. RUNHEAVY CORPORATION Income Statement 0 0 Required information q Req 3B Prepare a classified balance sheet for January 31. (Amounts to be deducted should be indicated by a minus sign.) RUNHEAVY CORPORATION Balance Sheet 0 0 $ 0 0