Reference no: EM132470978

Prat Corp. started the 2018 accounting period with $34,000 of assets (all cash), $14,000 of liabilities, and $19,000 of common stock. During the year, the Retained Earnings account increased by $18,050. The bookkeeper reported that Prat paid cash expenses of $33,000 and paid a $3,400 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 $8,500 cash to reduce the liability owed to the bank, and the business acquired $7,700 of additional cash from the issue of common stock.

Question a-1. Prepare an income statement for the 2018 accounting period.

Question a-2. Prepare a statement of changes in stockholders' equity for the 2018 accounting period.

Question a-3. Prepare a period-end balance sheet for the 2018 accounting period.

Question a-4. Prepare a statement of cash flows for the 2018 accounting period.