On January 1, Year 3, the following information was drawn from the accounting records of Carter Company: cash of $400; land of $2,400; notes payable of $700; and common stock of $1,540. Required a. Determine the amount of retained earnings as of January 1, Year 3. b. After looking at the amount of retained earnings, the chief executive officer (CEO) wants to pay a $500 cash dividend to the stockholders. Can the company pay this dividend? c. As of January 1, Year 3, what percentage of the assets were acquired from creditors? d. As of January 1, Year 3, what percentage of the assets were acquired from investors? e. As of January 1, Year 3, what percentage of the assets were acquired from retained earnings? f. Create an accounting equation using percentages instead of dollar amounts on the right side of the equation. g. During Year 3, Carter Company earned cash revenue of $660, paid cash expenses of $380, and paid a cash dividend of $58. Record these events using the accounting equation. g-1. Prepare an income statement dated December 31, Year 3. g-2. Prepare a statement of changes in stockholders' equity dated December 31, Year 3. g-3. Prepare a balance sheet dated December 31, Year 3. g-4. Prepare a statement of cash flows dated December 31, Year 3. j. What is the balance in the Revenue account on January 1, Year 4? Complete this question by entering your answers in the tabs below. Req A Req C to and B E Req F Req G Req G1 Req G2 Req G3 Req G4 Reqj Determine the amount of retained earnings as of January 1, Year 3. After looking at the amount of retained earnings, the chief executive officer (CEO) wants to pay a $500 cash dividend to the stockholders. Can the company pay this dividend? Show less $ 560 a. Amount of retained earnings Can the company pay this b. dividend? No As of January 1, Year 3, what percentage of the assets were acquired from creditors, investors and retained earnings? c. 25 % d. Percentage of the assets were acquired from creditors Percentage of the assets were acquired from investors Percentage of the assets were acquired from retained earnings 55 % e. 20% Create an accounting equation using percentages instead of dollar amounts on the right side of the equation. CARTER COMPANY Accounting Equation as of January 1, Year 3 Assets = Liabilities + Stockholders' Equity Notes Common Cash + Land Retained Payable Stock Earnings $ $ 400 + 25 % + 55% + 2,400 20% + During Year 3, Carter Company earned cash revenue of $660, paid cash expenses of $380, and paid a cash dividend of $58. Record these events using the accounting equation. (Enter any decreases to account balances with a minus sign. If there is no effect on the Account Titles for Retained Earnings, leave the cell blank. Not all cells require input.) Show less CARTER COMPANY Accounting Equation as of December 31, Year 3 Assets = Liabilities + Stockholders' Equity Account Titles for Notes Common Retained Cash + Land = Retained Payable Stock Earnings Earnings 400+ 2,400 700 + 1,540 + 560 660 660 Revenue (380) (380) Expenses (58) (58) Dividend 622 + 2,400 = 700 + 1,540 + + 782 Prepare an income statement dated December 31, Year 3. CARTER COMPANY Income Statement For the Year Ended December 31, Year 3 Revenue $ 660 Expenses 380 Net income $ 280 Prepare a statement of changes in stockholders' equity dated December 31, Year 3. CARTER COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 3 Beginning common stock $ $ 0 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity les 0 0 Prepare a balance sheet dated December 31, Year 3. CARTER COMPANY Balance Sheet As of December 31, Year 3 Assets Cash $ 0 Total assets Liabilities $ 0 Total liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Prepare a statement of cash flows dated December 31, Year 3. (Cash outflows should be indicated with a minus sign.) CARTER COMPANY Statement of Cash Flows For the Year Ended December 31, Year 3 Cash flows from operating activities: $ 0 Net cash flow from operating activities: Cash flows from investing activities Cash flows from financing activities Net cash flow from financing activities: 0 Plus: Beginning cash balance Ending cash balance $ 0