Problem

Interrelationships among financial statementsHarber Corp. started the accounting period wi...

Interrelationships among financial statements

Harber Corp. started the accounting period with $15,000 of assets, $2,200 of liabilities, and $4.550 of retained earnings. During  the period, the Retained Earnings account increased by $3.565. The bookkeeper reported that Harber paid cash expenses of $5,010 and paid a $6.000 cash dividend to stockholders, but she could not find a record of the amount of cash that Harber received for performing services. Harber also paid $1,500 cash to reduce the liability owed to a bank, and the business acquired $2,000 of additional cash from the issue of common stock.

Required

a. Prepare an income statement, statement of changes in stockholders equity, year-end balance sheet, and statement of cash flows for the accounting period. (Hint: Determine the beginning balance in the common stock account 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.

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