Reference no: EM132214762

Question - The following information is available for Aries, Inc. for the year ended December 31, 2018. This is the first year of existence for the corporation. Lynn O'Leeum is the sole owner of the stock of the corporation. Mike Rowave is the CEO and President of the corporation. Aries had the following transactions during 2018:

1) Acquired $10,000 cash from the issuance of common stock.

2) Borrowed $10,000 from a bank, signing a note to repay the loan with several payments over 3 years.

3) Paid $12,000 cash to buy a piece of land to use in its business.

4) Provided services to its customers and received $15,000 of cash from them.

5) Paid $2,000 cash for supplies. The company used $1,800 of these supplies during 2018.

6) Paid $3,000 cash for advertising for the business.

7) Paid $6,000 cash for wages to Mike Rowave for work he performed during the year.

8) Paid $5,000 to the bank. $4,500 of this was principal and reduced the balance of the loan. The other $500 was interest.

9) Paid $1,000 cash for rent on a building used in the business during the year.

10) Paid a $1,000 cash dividend to Lynn O'Leeum.

Required: Prepare an income statement, a statement of changes in stockholders' equity, and a balance sheet for the company for the year ended December 31, 2018.