Problem 1-33A Interrelationships among financial statements LO 1-2, 1-3, 1-5, 1-6, 1-7

[The following information applies to the questions displayed below.] Pratt Corp. started the Year 2 accounting period with total assets of $33,000 cash, $13,500 of liabilities, and $8,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $10,550. The bookkeeper reported that Pratt paid cash expenses of $27,500 and paid a $2,300 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 $6,000 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.

Required information Problem 1-33A Interrelationships among financial statements LO 1-2, 1-3, 1-5, 1-6, 1-7 (The following information applies to the questions displayed below.) Pratt Corp. started the Year 2 accounting period with total assets of $33,000 cash, $13,500 of liabilities, and $8,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $10,550. The bookkeeper reported that Pratt paid cash expenses of $27,500 and paid a $2,300 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 $6,000 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. Problem 1-33A Part a Required a. Prepare the Year 2 income statement. PRATT CORP Income Statement For the Year Ended December 31, Year 2 $ 0 b. Prepare the Year 2 statement of changes in stockholders' equity PRATT CORP. Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 2 Beginning common stock $ 0 Ending common stock Beginning retained earnings 0 Ending retained earnings Total stockholders' equity $ 0 c. Prepare the Year 2 balance sheet. PRATT CORP Balance Sheet As of December 31, Year 2 Assets $ 0 Total assets Liabilities Stockholders' Equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 d. Prepare a statement of cash flows for the Year 2 accounting period. (Cash outflows should be indicated with a minus sign.) PRATT CORP Statement of Cash Flows For the Year Ended December 31, Year 2 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 Ending cash balance 0