Background Information: a) Donald Duck and Friends started their company when they issued 3,000 shares of $8 par value stock on January 1,2018

b) The stock issued at a market price of $13 per share

c) During the year, Donald Duck and Friends had revenue of $43,000

d) Donald Duck and Friends paid cash for $18,000 in expenses

e) Donald Duck and Friends paid a cash Dividend of $25,000

A B F G H I J C D E Donald Duck and Friends Income Statement For the Year Ended December 31,2018 $ 18 Revenue 19 Expense 20 Net Income 43,000 (18,000) 25,000 Hint: This is from transaction C Hint: This is from Transaction D $ b) Prepare a year-end balance Sheet Donald Duck and Friends Balance Sheet As of December 31, 2018 28 Assets Cash Hint: This is the sum of sale of stock (Transaction A & B) and also Transactions C-E $ 39,000 31 Total Assets 32 Liabilities 36 37 34 Total Liabilities 35 Stockholders Equity Common Stock Paid-in Capital in Excess of Par 38 Total Paid-Capital 39 Retained Earnings 40 Total Liabilities and Stockholders Equity Problem 5.1 Problem 5.2 Problem 53 Hint: This is from Transaction A Hint: This is from Transaction B $ 39,000 0 $ $ 39,000 Problem 54 Problem 5.5 Problem 5.6