Required information (The following information applies to the questions displayed below] Pratt Corp. started the Year 2 accounting period with total assets of $36,000 cash, $15,000 of liabilities, and $11,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $13,550. The bookk keeper reported that Pratt paid cash expenses of $29,000 and paid a $2.600 cash dividend to stockholders, but 9,000 cash to reduce the liability owed to a bank, and the business acquired $8,300 of additional cash from the issue of common stock. Assume all transactions are cash transactions Required a. Prepare the Year 2 income statement. PRATT CORP Income Statement For the Year Ended December 31, Year2 The following information applies to the questions displayed below Pratt Corp. started the Year 2 accounting period with total assets of $36,000 cash, $15,000 of liabilities, and $11,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $13,550. The bookkeeper reported that Pratt paid cash expenses of $29,000 and paid a $2,600 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 pald $9,000 cash to reduce the liability owed to a bank, and the business acquired $8,300 of additional cash from the issue of common stock. Assume all transactions are cash transactions. 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 stock Pratt Corp. started the Year 2 accounting period with total assets of $36,000 cash, $15,000 of liabilities, and $11,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $13,550. The bookkeeper reported that Pratt paid cash expenses of $29,000 and paid a $2,600 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 9,000 cash to reduce the liability owed to a bank, and the business acquired $8,300 of additional cash from the issue of common stock. Assume all transactions are cash transactions. c. Prepare the Year 2 balance sheet. PRATT CORP Balance Sheet As of December 3 1, Year 2 Total assets Liabilities Stockholders' Equity Required information The following information applies to the questions displayed below Pratt Corp. started the Year 2 accounting period with total assets of $36,000 cash,$15,000 of liabilities, and $11,000 of retained earnings. During the Year 2 accounting period, the Retained Earnings account increased by $13,550. The bookkeeper reported that Pratt paid cash expenses of $29,000 and paid a $2,600 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 $9,000 cash to reduce the liability owed to a bank, and the business acquired $8,300 of additional cash from the issue of common stock. Assume all transactions are cash transactions d. Prepare a statement of cash flows for the Year 2 accounting period. (Cash outflows should be indicated with a minus sign.) Statement of Cash Flows For the Year E ber 31, Year 2 ting activities Net cash flow from financing Ending cash balance Next >
