Cascade Company was started on January 1, Year 1, when it acquired $153,000 cash from the owners. During Year 1, the company earned cash revenues of $87,300 and incurred cash expenses of $60,800. The company also paid cash distributions of $6,000.

Required

Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.)

Cascade is a corporation. It issued 10,000 shares of $10 par common stock for $153,000 cash to start the business.