Reference no: EM132471740

Problem - Prat Corp. started the 2018 accounting period with $29,000 of assets (all cash), $11,500 of liabilities, and $14,000 of common stock. During the year, the Retained Earnings account increased by $11,550. The bookkeeper reported that Prat paid cash expenses of $30,500 and paid a $2,900 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 $4,000 cash to reduce the liability owed to the bank, and the business acquired $6,300 of additional cash from the issue of common stock.

Required -

1. Prepare an income statement for the 2018 accounting period.

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

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

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