Equipment costing 4000$ was purchased with cash during 2021. Equipment with a book value of 500$ (cost of 1500$ less acumulated deprication of 1000$) was sold for 500$.

There was 3000$ of common stock issued during 2021.

Questions:

1. Prepare a multiple-step income statement for 2021.

2. Prepare a statement of shareholders' equity for 2021.

3. Prepare a comparative balance sheet for December 31, 2020, and December 31, 2021.

4. Prepare a statement of cash flows for 2021. 5. Prepare closing entries for December 31, 2021.