Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am having trouble completing this example for my accounting class. Prat Corp. started the 2018 accounting period with $31,000 of assets (all cash), $12,500

I am having trouble completing this example for my accounting class.

image text in transcribed
Prat Corp. started the 2018 accounting period with $31,000 of assets (all cash), $12,500 of liabilities, and $6,000 of common stock. During the year, the Retained Earnings account Increased by $8.550. The bookkeeper reported that Prat paid cash expenses of $26.500 and paid a $2,100 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $4,000 cash to reduce the liability owed to the bank, and the business acquired $6,900 of additional cash from the issue of common stock. Required (/int Determine the amount of beginning retained earnings before considering the effects of the current perlod events. It also might help to record all events under an accounting equation before preparing the statements.) a-1. Prepare an Income statement for the 2018 accounting period. a-2. Prepare a statement of changes in stockholders' equity for the 2018 accounting period. a-3. Prepare a period-end balance sheet for the 2018 accounting period. a-4. Prepare a statement of cash flows for the 2018 accounting period. Complete this question by entering your answers in the tabs below. Req A1 Reg AZ Req A3 Req A4 Prepare a statement of cash flows for the 2018 accounting period. (Amounts to be deducted should be indicated with a minus sign.) Prat Corp. Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities: Cash payments for expenses $ (28.500) Cash payment for land 0 Net cash flow from operating activities $ (28.500) Cash flows from investing activities Cash flows from financing activities: Cash dividend to stockholders $ (2,100) Cash receipts from stock issue 3,900 Cash payments to creditors Net cash flow from financing activities 4.800 Net increase in cash Plus: Beginning cash balance Ending cash balance 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Frank Hodge

10th edition

1259964949, 1259964947, 978-1259964947

More Books

Students also viewed these Accounting questions

Question

1. Avoid conflicts in the relationship

Answered: 1 week ago

Question

1. What will happen in the future

Answered: 1 week ago