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C$4-1($Algo$)$ From Recording Transactions to Preparing Accrual and Deferral Adjustments and Reporting Results on the Balance Sheet and Income Statement $($Chapters $2,3,$ and $4)[$LO $2-3,$ LO $3-3,$ LO $4-2,$ LO $43,[$O $4-4]$

$[$The following information applies to the questions displayed below.$]$

RunHeavy Corporation $($RHC$)$ is a corporation that manages a local band. It had the following activities during its first month.

a$.$ RHC was formed with an investment of $$11,500$ cash, paid in by the leader of the band on January $3$ in exchange for common stock.

b$.$ On January $4,$ RHC purchased music equipment by paying $$1,900$ cash and signing an $$9,600$ promissory note payable in three years.

c$.$ On January $5,$ RHC booked the band for six concert events, at a price of $$2,600$ each, but no cash was collected yet.

d$.$ Of the six events, four were completed between January $10$ and $20.$

e$.$ On January $22,$ cash was collected for three of the four events.

f$.$ The other two bookings were for February concerts, but on January $24,RHC$ collected half of the $$2,600$ fee for one of them.

g$.$ On January $27,RHC$ paid $$3,040$ cash for the band's travel$-$related costs.

h$.$ On January $28,RHC$ paid its band members a total of $$2,370$ cash for salaries and wages for the first three events.

i$.$ As of January $31,$ the band members hadn't yet been paid wages for the fourth event completed in January, but they would be paid in February at the same rate as for the first three events.

j$.$ As of January $31,RHC$ has not yet recorded the $$188$ of monthly depreciation on the equipment.

k$.$ Also, RHC has not yet paid or recorded the $$72$ interest owed on the promissory note at January $31.$

I. $RHC$ is subject to a $25\%$ tax rate on the company's income before tax.

Create an Income statement and balance sheet