The following events apply to Paradise Vacationss first year of operations:

1. Acquired $21,000 cash from the issue of common stock on January 1, Year 1.
2. Purchased $850 of supplies on account.
3. Paid $4,320 cash in advance for a one-year lease on office space.
4. Earned $29,350 of revenue on account.
5. Incurred $12,650 of other operating expenses on account.
6. Collected $24,500 cash from accounts receivable.
7. Paid $9,050 cash on accounts payable.
8. Paid a $3,100 cash dividend to the stockholders.

Information for Adjusting Entries

1. There was $160 of supplies on hand at the end of the accounting period.
2. The lease on the office space covered a one-year period beginning November 1.
3. There was $3,700 of accrued salaries at the end of the period.

Prepare a balance sheet.

Prepare a statement of cash flows.

Prepare a balance sheet. PARADISE VACATIONS Balance Sheet As of December 31, Year 1 \begin{tabular}{|l|l|l|} \hline Assets & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total liabilities & & \\ \hline Stockholders' Equity & & \\ \hline & & \\ \hline & & \\ \hline Total stockholders' equity & & \\ \hline Total liabilities and stockholders' equity & & \\ \hline \end{tabular} Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.)