Question
Prat Corp. started the 2018 accounting period with $34,000 of assets (all cash), $14,000 of liabilities, and $9,000 of common stock. During the year, the
Prat Corp. started the 2018 accounting period with $34,000 of assets (all cash), $14,000 of liabilities, and $9,000 of common stock. During the year, the Retained Earnings account increased by $11,550. The bookkeeper reported that Prat paid cash expenses of $28,000 and paid a $2,400 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 $7,000 cash to reduce the liability owed to the bank, and the business acquired $7,700 of additional cash from the issue of common stock.
Prepare an income statement for the 2018 accounting period and then a statement of changes in stockholders' equity for the 2018 accounting period afterwards prepare the period-end balance sheet for the 2018 accounting period and then a statement of cash flows for the 2018 accounting period.
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