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The following events apply to Paradise Vacationss first year of operations: Acquired $21,000 cash from the issue of common stock on January 1, Year 1.
The following events apply to Paradise Vacationss first year of operations:
- Acquired $21,000 cash from the issue of common stock on January 1, Year 1.
- Purchased $850 of supplies on account.
- Paid $4,320 cash in advance for a one-year lease on office space.
- Earned $29,350 of revenue on account.
- Incurred $12,650 of other operating expenses on account.
- Collected $24,500 cash from accounts receivable.
- Paid $9,050 cash on accounts payable.
- Paid a $3,100 cash dividend to the stockholders.
Information for Adjusting Entries
- There was $160 of supplies on hand at the end of the accounting period.
- The lease on the office space covered a one-year period beginning November 1.
- There was $3,700 of accrued salaries at the end of the period.
- 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.
Prepare a statement of changes in stockholders' equity. Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) Prepare a balance sheet. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ PARADISE VACATIONS } \\ \hline \multicolumn{3}{|c|}{ Balance Sheet } \\ \hline \multicolumn{3}{|c|}{ As of December 31, Year 1} \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \\ \hline \\ \hline \\ \hline \multicolumn{3}{|l|}{7} \\ \hline \\ \hline Total assets & $ & 0 \\ \hline \multicolumn{3}{|l|}{ Liabilities } \\ \hline \multicolumn{3}{|l|}{7} \\ \hline \\ \hline \\ \hline Total liabilities & $ & 0 \\ \hline \multicolumn{3}{|l|}{ Stockholders' Equity } \\ \hline \\ \hline \multicolumn{3}{|l|}{7} \\ \hline \multicolumn{3}{|l|}{7} \\ \hline Total stockholders' equity & & 0 \\ \hline Total liabilities and stockholders' equity & $ & 0 \\ \hline \end{tabular} Prepare an income statement
The following events apply to Paradise Vacationss first year of operations:
- Acquired $21,000 cash from the issue of common stock on January 1, Year 1.
- Purchased $850 of supplies on account.
- Paid $4,320 cash in advance for a one-year lease on office space.
- Earned $29,350 of revenue on account.
- Incurred $12,650 of other operating expenses on account.
- Collected $24,500 cash from accounts receivable.
- Paid $9,050 cash on accounts payable.
- Paid a $3,100 cash dividend to the stockholders.
Information for Adjusting Entries
- There was $160 of supplies on hand at the end of the accounting period.
- The lease on the office space covered a one-year period beginning November 1.
- There was $3,700 of accrued salaries at the end of the period.
- 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.
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