Southeast Pest Control, Inc., was started when its owners invested $20,000 in the business in exchange for

Question:

Southeast Pest Control, Inc., was started when its owners invested $20,000 in the business in exchange for common stock on January 1, 2011. The cash received by the company was immediately used to purchase a $15,000 heavy-duty chemical truck, which had no residual value and an expected useful life of five years. The company earned $13,000 of cash revenue during 2011 and had cash expenses of $4,500. Prepare an income statement, statement of changes in shareholders’ equity, and statement of cash flows for the year ended December 31, 2011, and a balance sheet at December 31, 2011.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...