Question

Problem 1-34 Interrelationships among financial statements Prat Corp. started the 2018 accounting period with $30,000 of assets (all cash), $12,000 of liahili and $13.000 of common stock. During the year, the Retained Earnings account increased by $7. The bookkeeper reported that Pratt paid cash expenses of $26.000 and paid a $2.000 cash dividend to the stockholders, but she could not find a record of the amount of cash that Pratt received for pe ing services. Pratt also paid $3,000 acquired $4.000 of additional cash from the issue of common stock. es, rform- cash to reduce the liability owed to the bank, and the business Required a. Prepare an income statement, statement of changes in stockholders' equity, period-end balance sheet, and statement of cash flows for the 2018 accounting period. (Hint: Determine the amount of beginning retained earnings before considering the effects of the current period events. It also might help to record all events under an accounting equation before preparing the statements.) b. Determine the percentage of total assets that were provided by creditors, investors, and earnings c. Determine the balance in the Revenue, Expense, and Dividends accounts as of Januar Round to three decimal places. anuary 1, 2019 Prohlem 1.35 n

Answer 1