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Prat Corp. started the 2018 accounting period with $30,000 of assets (all cash), $12,000 of liabilities,...

Prat Corp. started the 2018 accounting period with $30,000 of assets (all cash), $12,000 of liabilities, and $15,000 of common stock. During the year, the Retained Earnings account increased by $16,050. The bookkeeper reported that Prat paid cash expenses of $31,000 and paid a $3,000 cash dividend to the stockholders, but she could not find a record of the amount of cash that Prat received for performing services. Prat also paid $4,500 cash to reduce the liability owed to the bank, and the business acquired $6,600 of additional cash from the issue of common stock.

  1. a-1. Prepare an income statement for the 2018 accounting period.
  2. a-2. Prepare a statement of changes in stockholders’ equity for the 2018 accounting period.
  3. a-3. Prepare a period-end balance sheet for the 2018 accounting period.
  4. a-4. Prepare a statement of cash flows for the 2018 accounting period.

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ekkarill92 answered 1 year ago
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