Raleigh Corporation began operations on February 10, 2012. During 2012, the company entered into the following transactions:
Question:
Raleigh Corporation began operations on February 10, 2012. During 2012, the company entered into the following transactions:
1. Issued $110,000 of common, stock and $25,000 of preferred stock.
2. Performed services for $580,000.
3. Issued $475,000 in long-term debt for cash.
4. Incurred expenses: $125,000 for wages, $35,000 for supplies, $80,000 for depreciation, and $75,000 for miscellaneous expenses.
5. Purchased fixed assets for $250,000 cash.
6. Declared, but did not pay, cash dividends of $10,000.
7. Purchased fixed assets in exchange for a long-term note valued at $85,000.
Required
(a) Classify each transaction as either operating, investing, or financing.
(b) Prepare an income statement.
(c) Compute comprehensive income and compare it to the income reported on the income statement. Discuss.
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
a 1 Financing 2 Operating 3 Financing 4 Operating 5 Investing 6 Financing 7 ...View the full answer
