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Transaction Analysis and Financial Statements Blue Jay Delivery Service is incorporated on January 2 and enters into the following transactions during its first month of

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Transaction Analysis and Financial Statements Blue Jay Delivery Service is incorporated on January 2 and enters into the following transactions during its first month of operations: 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. January 3: Purchased a warehouse and land for $80,000 in cash. An appraiser values the land at $20,000 and the warehouse at $60,000 January 4: Signed a three-year promissory note at Third State Bank in the amount of $50,000. 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. Cash amounting to $7,490 was received from customers on account during the month. 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. Required: 1. Complete the below table to summarize the preceding transactions as they affect the accounting equation. Ignore depreciation expense and interest expense. If an account is unaffected by a transaction, enter "O". Use the minus sign to indicate decreases. Blue Jay Delivery Service Transactions for the Month of January Assets Liabilities Stockholders' Equity Date Cash Accounts Receivable Trucks Warehouse Land Accounts Payable Notes Payable Capital Stock Retained Earnings $ $ $ January 2 January 3 Balance $ $ January 4 Balance January 6 Balance $ January 31-Revenue Balance January 31-Payment received Balance doo 1000000 $ January 31-Gas & oil 1.11. nooi 11.01. 1.11. und $ Balance $ Total Assets! Total Liabilities and Stockholders Equity: 2. Prepare an income statement for the month of January. Blue Jay Delivery Service Income Statement For the Month Ended January 31 3. Prepare a classified balance sheet at January 31. Blue Jay Delivery Service Balance Sheet January 31 Assets Current assets Total current assets o Property, plant, and equipment: $ Total property, plant, and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Long-term debt: Total liabilities Total stockholders' equity Total liabilities and stockholders' equity 4. Assume that you are considering buying stock in a company. The business signed a three year promissory note at Third State Bank in the amount of $50,000. What additional information you would like to have about this transaction? a. What is the interest rate of the loan? b. What is the repayment schedule? c. What was the interest rate for a similar loan 20 years ago? d. Were any assets offered as collateral

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