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

Acquired $30,000 cash from the issue of common stock on January 1, Year 1.

Purchased $1,300 of supplies on account.

Paid $5,400 cash in advance for a one-year lease on office space.

Earned $38,350 of revenue on account.

Incurred $14,000 of other operating expenses on account.

Collected $29,000 cash from accounts receivable.

Paid $9,500 cash on accounts payable.

Paid a $4,000 cash dividend to the stockholders.

Information for Adjusting Entries

There was $250 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 $4,600 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.

Prepare a statement of changes in stockholders equity.

PARADISE VACATIONS
Statement of Changes in Stockholders Equity
For the Year ended December 31, Year 1
Beginning common stock	$30,000selected answer incorrect
not attempted	0selected answer incorrect
Ending common stock		$30,000
Beginning retained earnings	$0selected answer correct
Add: Net incomeselected answer correct	17,800selected answer correct
Less: Dividendsselected answer correct	4,000selected answer correct
Ending retained earnings		13,800
Total stockholders equity		$43,800

Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.)

PARADISE VACATIONS
Statement of Cash Flows
For the Year ended December 31, Year 1
Cash flows from operating activities
not attempted	not attempted
not attempted	not attempted
not attempted	not attempted
Net cash flow from operating activities		$0
Cash flows from investing activities		not attempted
Cash flows from financing activities
not attempted	not attempted
not attempted	not attempted
not attempted	not attempted
Net cash flow from financing activities		0
Net change in cash		0
not attempted		not attempted
Ending cash balance		$0