Enter the following transactions in the accounts of P.Reynolds Balance off the accounts and extract a trial balance as at January 31, 2015.
2015
January
1 Started Business with capital in cash of $675 and $1200 in the bank.
2 Bought goods on credit from the following persons: M. Davis $ 825; D. Riley $450 and T. Bailey $420
4 Sold goods on credit to: R. Miller $ 975; S. Jew $ 600; R.Mullings $1215
6 Paid rent by cash $190.
9 S. Jew paid us his account by cash $315
10 R.Mullings paid us $600 by cheque.
12 We paid the following by cheque: M. Davis $195, T. Bailey $ 75.
31 Paid Telephone bill by cheque $ 240
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Journal Entries, Trial Balance, and Financial Statements (Appendix)
Refer to the transactions for Blue Jay Delivery Service in Problem 3-6.
Required
1. Prepare journal entries on the books of Blue Jay to record the transactions entered into during the month.
2. Prepare a trial balance at January 31.
3. Prepare an income statement for the month of January.
4. Prepare a classified balance sheet at January 31.
5. Assume that you are considering buying stock in this company. Beginning with the transaction to record the purchase of the property on January 3, list any additional information you would like to have about each of the transactions during the remainder of the month.
Reference: Problem 3-6:
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. Prepare a table to summarize the preceding transactions as they affect the accounting equation. Ignore depreciation expense and interest expense. Use the format in Exhibit 3-1.
2. Prepare an income statement for the month of January.
3. Prepare a classified balance sheet at January 31.
4. Assume that you are considering buying stock in this company. Beginning with the transaction to record the purchase of the property on January 3, list any additional information you would like to have about each of the transactions during the remainder of the month.
Reference: Exhibit 3-1:

Refer to the transactions for Blue Jay Delivery Service in Problem 3-6.
Required
1. Prepare journal entries on the books of Blue Jay to record the transactions entered into during the month.
2. Prepare a trial balance at January 31.
3. Prepare an income statement for the month of January.
4. Prepare a classified balance sheet at January 31.
5. Assume that you are considering buying stock in this company. Beginning with the transaction to record the purchase of the property on January 3, list any additional information you would like to have about each of the transactions during the remainder of the month.
Reference: Problem 3-6:
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. Prepare a table to summarize the preceding transactions as they affect the accounting equation. Ignore depreciation expense and interest expense. Use the format in Exhibit 3-1.
2. Prepare an income statement for the month of January.
3. Prepare a classified balance sheet at January 31.
4. Assume that you are considering buying stock in this company. Beginning with the transaction to record the purchase of the property on January 3, list any additional information you would like to have about each of the transactions during the remainder of the month.
Reference: Exhibit 3-1:

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