Reference no: EM131816433
QUESTIONS
Rapid Investment is incorporated on February 2, 2010, and enters into the following transactions during its first month of operations:
February 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 owner for the shares
February 3: purchased a warehouse and land for $80,000 in cash. Appraising values the land at $ 20,000 and the warehouse at $60,000
February 4: signed a three year promissory note at Family bank in the amount of $50,000
February 6: purchased five new delivery trucks for a total of $45,000 in cash.
February 31: performed services on account that amounted to $15900 during the month. Cash amounting $7,490 was received from customers on account during the month.
February 31: established an open account at a local service station at the beginning of the month. Purchase gas and oil during February amounted to $3230. Rapid Investment has until the 10th of the following month to pay its bill
REQUIRED:
1. Prepare journal entries on the books of Rapid Investment to record transactions entered into during the month.
2. Prepare a trial balance at February 31, 20110.
3. Prepare an income statement for the month ended February 31, 2010.
4. Prepare a classified balance sheet at February 31, 2010.