Question
prat corp. started the 2018 accounting period with $36000 of assets (all cash), $1500 liabilities, and $11000 of common stock. During the year, the Retained
prat corp. started the 2018 accounting period with $36000 of assets (all cash), $1500 liabilities, and $11000 of common stock. During the year, the Retained Earnings account increased by $ 13550. The book keeper reported that prat paid cash expenses of $29000 and paid a $2600 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 $9000 cash to reduce the liability owed to the bank, and the business acquired $8300 of additional cash from the issue of common stock.
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