Reference no: EM132491011

Harry and Ron formed Granger Company on January 1, 2013. Each contributed $200,000 in exchange for 10,000 total shares of Common Stock with a par value of $1. The following are transactions for the month of January, the first month of operations.

Point 1: Company acquired 400 acres of land in South Dakota at a cost of $500 per acre, paying in full.

Point 2: Company established a line of credit with Dakota National Bank in the amount of $500,000 using the land as collateral.

Point 3: Purchased supplies for $4,500 cash

Point 4: Paid for January's equipment rental, cash $50,000.

Point 5: Sold timber from the land for $95,000.

Point 6: Signed a 1 year lease on a 3,000 sq. ft. office, paying $5,400 for the month.

Point 7: Sold large rocks to a landscaping customer, receiving half of the $15,000 in cash.

Point 8: Paid $3,000 for fuel and oil used in the equipment.

Point 9: Sold excess topsoil to a developer, 20 dump truck loads at $100 per load, cash.

Point 10: Paid employees for the month, $12,000.

Point 11: ABC Sign Company installed company signage at a cost of $1,500.

Point 12: Received and paid invoice for insurance premiums for months of January-March, $15,000

Point 13: Received invoice for 2,300 for fuel and oil used in the equipment.

Point 14: 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.

Point 15: 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 Exp                             Wages Exp

Requirements:

Question 1: Provide a journal entry for each transaction or state "no journal entry required"

Question 2: Prepare the Income Statement for the month of January, using proper form, calculate EPS.

Question 3: Prepare the Balance Sheet for the month of January, using proper form, calculate current ratio.