Income Statement Preparation On January 1, 2004, Pete Rabbit began Leafy Green Corporation, a salad bar supply business, by investing $5,000 cash and a delivery van worth $7,200 in exchange for 1,000 shares of $2 par common stock. Pete expects the van to have a remaining life of three years with no salvage value; he plans to use straight line depreciation. Two friends invested $2,000 each, receiving 150 shares of stock each.
The next day, Leafy Green borrowed $8,400 at 8% annual interest for operating funds. The loan is to be repaid or refinanced in three months.
Salad ingredients for the month of January cost $8,000; Leafy Green has paid for 75% of this. The company has delivered prepared salad bar materials to three customers, each of whom has been billed $5,000; two of the three have paid. No ingredients were on hand at the end of the month. Other operating expenses, paid in cash, were $4,500.
Required Prepare an income statement for Leafy Green Corporation, for the month of January 2004. Include earnings per share.