Question

Income Statement and Balance Sheet Green Bay Corporation began business in July 2017 as a commercial fishing operation and a passenger service between islands. Shares of stock were issued to the owners in exchange for cash. Boats were purchased by making a down payment in cash and signing a note payable for the balance. Fish are sold to local restaurants on open account, and customers are given 15 days to pay their account. Cash fares are collected for all passenger traffic. Rent for the dock facilities is paid at the beginning of each month. Salaries and wages are paid at the end of the month. The following amounts are from the records of Green Bay Corporation at the end of its first month of operations: Accounts receivable $18,300 Notes payable $57,000 Boats 74,100 Passenger service revenue 11,910 Capital stock 38,200 Rent expense 3,800 Cash 7,650 Retained earnings ? Dividends 6,200 Salary and wage expense 17,300 Fishing revenue 20,240

1. Using the data given, prepare an income statement for the month ended July 31, 2017.

   Green Bay Corporation
   Income Statement
   For the Month Ended July 31, 2017
   Revenues:
   Total revenues
   Expenses:
   Total expenses

   2. Using the data given, prepare a balance sheet at July 31, 2017.

   Green Bay Corporation
   Balance Sheet
   July 31, 2017
   Assets
   Total assets
   Liabilities and stockholders' equity
   Total liabilities and stockholders' equity

   3. While assessing the long-term viability of the Notes Payable, which of the following would you least consider?

   1.	The due date.
   2.	The interest rate.
   3.	The amount of the note.
   4.	Any assets been offered as collateral for the loan.

Answer 1