Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare a statement of changes in stockholders' equity. The following events apply to Paradise Vacations's first year of operations: 1. Acquired $27,000 cash from the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Prepare a statement of changes in stockholders' equity. The following events apply to Paradise Vacations's first year of operations: 1. Acquired $27,000 cash from the issue of common stock on January 1, Year 1 . 2. Purchased $1,150 of supplies on account. 3. Paid $5,040 cash in advance for a one-year lease on office space. 4. Earned $35,350 of revenue on account. 5 . Incurred $13,550 of other operating expenses on account. 6. Collected $27,500 cash from accounts receivable. 7. Paid $9,350 cash on accounts payable. 8. Paid a $3,700 cash dividend to the stockholders. Information for Adjusting Entries 9. There was $220 of supplies on hand at the end of the accounting period. 10. The lease on the office space covered a one-year period beginning November 1 11. There was $4,300 of accrued salaries at the end of the period. Information for Adjusting Entries 9. There was $220 of supplies on hand at the end of the accounting period. 10. The lease on the office space covered a one-year period beginning November 1. 11. There was $4,300 of accrued salaries at the end of the period. Required a. Record these transactions in general journal form. b. Post the transaction data from the journal to ledger T-accounts. c. Prepare a trial balance. d-1. Prepare an income statement. d-2. Prepare a statement of changes in stockholders' equity. d-3. Prepare a balance sheet. d-4. Prepare a statement of cash flows. PARADISE VACATIONS Statement of Cash Flows For the Year ended December 31, Year 1 \begin{tabular}{|l|l|} \hline Cash flows from operating activities \\ \hline Inflow from stock issue \\ \hline Inflow from customers \\ \hline Outflow for expenses \\ \hline Net cash flow from operating activities \\ \hline Cash flows from investing activities \\ \hline Cash flows from financing activities \\ \hline \\ \hline Outflow for dividends & \\ \hline Net cash flow from financing activities & \\ \hline Net change in cash & \\ \hline Add: Beginning cash balance & \\ \hline Ending cash balance & 0 \\ \hline \end{tabular}

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

Step: 3

blur-text-image

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

Connect For Financial Accounting Fundamentals

Authors: Author

8th Edition

126411169X, 9781264111695

More Books

Students also viewed these Accounting questions