Prepare an income statement for the accounting period

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Point 1: Prat Corp. started the 2018 accounting period with $30,000 of assets (all cash), $12,000 of liabilities, and $15,000 of common stock. During the year, the Retained Earnings account increased by $16,050. The bookkeeper reported that Prat paid cash expenses of $31,000 and paid a $3,000 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 $4,500 cash to reduce the liability owed to the bank, and the business acquired $6,600 of additional cash from the issue of common stock.

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

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

Question 3: Prepare a period-end balance sheet for the 2018 accounting period. Prepare a statement of cash flows for the 2018 accounting period.

Reference no: EM132482693

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