Harry and Ron formed Granger Company on January 1, 2013. Each contributed $200,000 in exchange...
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Harry and Ron formed Granger Company on January 1, 2013. Each contributed $200,000 in exchange for 10,000 shares of Common Stock with a par value of $1. The following are transactions for the month of January, the first month of operations.
Company acquired 400 acres of land in South Dakota at a cost of $500 per acre, paying in full.
Company established a line of credit with Dakota National Bank in the amount of $500,000 using the land as collateral.
Purchased supplies for $3,500 cash
Paid for Januarys equipment rental, cash $50,000.
Sold timber from the land for $75,000.
Signed a 1 year lease on a 2,000 sq. ft. office, paying $2,800 for the month.
Sold large rocks to a landscaping customer, receiving half of the $15,000 in cash.
Paid $3,000 for fuel and oil used in the equipment.
Sold excess topsoil to a developer, 20 dump truck loads at $100 per load, cash.
Paid employees for the month, $12,000.
ABC Sign Company installed no trespassing signs and company signage at a cost of $1,500.
Received and paid invoice for insurance premiums for months of January-March, $15,000
Received invoice for 2,300 for fuel and oil used in the equipment.
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.
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
