Question
Pratt Corp. started the Year 2 accounting period with total assets of $33,000 cash, $13,500 of liabilities, and $18,000 of retained earnings. During the Year
Pratt Corp. started the Year 2 accounting period with total assets of $33,000 cash, $13,500 of liabilities, and $18,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $17,550. The bookkeeper reported that Pratt paid cash expenses of $32,500 and paid a $3,300 cash dividend to stockholders, but she could not find a record of the amount of cash revenue that Pratt received for performing services. Pratt also paid $7,500 cash to reduce the liability owed to a bank, and the business acquired $7,400 of additional cash from the issue of common stock. Assume all transactions are cash transactions.
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.
B.) Determine the percentage of total assets that were provided by creditors, investors, and earnings.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started